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On April 1 , Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month. April 1 Nozomi
On April Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month.
April Nozomi invested $ cash and computer equipment worth $ in the company in exchange for common stock.
The company rented furnished office space by paying $ cash for the first month's April rent.
The company purchased $ of office supplies for cash.
The company paid $ cash for the premium on a month insurance policy. Coverage begins on April
The company paid $ cash for two weeks' salaries earned by employees
The company collected $ cash for commissions earned.
The company paid $ cash for two weeks' salaries earned by employees.
The company paid $ cash for minor repairs to the company's computer.
The company paid $ cash for this month's telephone bill.
The company paid $ cash in dividends.
The company's chart of accounts follows:
tableCash,Commissions EarnedAccounts Receivable,tableDepreciation ExpenseComputerEquipoffice Supplies,Salaries ExpensePrepaid Insurance,Insurance ExpenseComputer Equipment,Rent ExpensetableAccumulatedDepreciationComputer Equip.Office Supplies ExpenseSalaries Payable,Repairs ExpenseCommon Stock,Telephone ExpenseRetained Earnings,Income SummaryDlvidends,,
Use the following information:
Prepaid insurance of $ has expired this month.
At the end of the month, $ of office supplies are still available.
This month's depreciation on the computer equipment is $
Employees earned $ of unpaid and unrecorded salaries as of monthend.
The company earned $ of commissions that are not yet billed at monthend.
Required:
& Prepare journal entries to record the transactions for April and post them to the ledger accounts in Requirement The company records prepaid and unearned items in balance sheet accounts.
Using account balances from Requirement b prepare an unadjusted trial balance as of April
Journalize the adjusting entries for the month and prepare the adjusted trial balance.
a Prepare the income statement for the month of April
b Prepare the statement of retained eamings for the month of April
c Prepare the balance sheet on April
a Prepare joumal entries to close the temporary accounts and then post to Requirement
b Post the journal entries to the ledger.
Prepare a postclosing trial balance.
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