Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month. April 2 Nozomi
On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month. April 2 Nozomi invested $39,000 cash and computer equipment worth $35,000 in the company. April 3 The company rented furnished office space by paying $2,600 cash for the first month's (April) rent. April 4 The company purchased $1,300 of office supplies for cash. April 10 The company paid $2,300 cash for a 12-month insurance policy. Coverage begins on April 11. April 14 The company paid $1,100 cash for two weeks' salaries earned by employees. April 24 The company collected $10,500 cash for commissions revenue. April 28 The company paid $1,100 cash for two weeks' salaries earned by employees. April 29 The company paid $350 cash for minor repairs to computer equipment. April 30 The company paid $1,250 cash for this month's telephone bill. April 30 Nozomi withdrew $2,000 cash from the company for personal use. The company's chart of accounts follows: 101 Cash 106 Accounts Receivable 124 Office Supplies 128 Prepaid Insurance 167 Computer Equipment 168 Accumulated Depreciation-Computer Equipment 209 Salaries Payable 301 J. Nozomi, Capital 302 J. Nozomi, Withdrawals 403 Commissions Revenue 612 Depreciation Expense-Computer Equipment 622 637 640 650 Salaries Expense Insurance Expense Rent Expense Office Supplies Expense 684 Repairs Expense 688 901 Telephone Expense Income Summary Chec
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started