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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 invested
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 invested $30,000 cash and computer equipment worth $20,000 in the company in exchange for common stock. 2 The company rented furnished office space by paying $1,800 cash for the first month's (April) rent. 3 The company purchased $1,000 of office supplies for cash. 10 The company paid $2,400 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. 14 The company paid $1,500 cash for two weeks' salaries earned by employees. 24 The company collected $8,000 cash for commissions earned. 28 The company paid $1,500 cash for two weeks' salaries earned by employees. 29 The company paid $350 cash for minor repairs to the company's computer. 30 The company paid $750 cash for this month's telephone bill. 30 The company paid $1,500 cash in dividends. 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 Equip. 209 Salaries Payable 307 Common Stock 318 Retained Earnings 319 Dividends 405 Commissions Earned 612 Depreciation Expense-Computer Equip. 622 Salaries Expense 637 Insurance Expense 640 Rent Expense 650 Office Supplies Expense 684 Repairs Expense 688 Telephone Expense 901 Income Summary s Use the following information: a. Prepaid insurance of $133 has expired this month b. At the end of the month, $600 of office supplies are still available. c. This month's depreciation on the computer equipment is $500. d. Employees earned $420 of unpaid and unrecorded salaries as of month-end. e. The company earned $1,750 of commissions that are not yet billed at month-end. Required: 1. & 2. Prepare journal entries to record the transactions for April and post them to the ledger accounts in Requirement 65. The company records prepaid and unearned items in balance sheet accounts. 3. Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30. Nozomi invested $30,000 cash and computer equipment worth $20,000 in the company in exchange for common stock. Note: Enter debits before credits. Date General Journal Debit Credit April 01 The company rented furnished office space by paying $1,800 cash for the first month's (April) rent. Note: Enter debits before credits. Date General Journal Debit Credit April 02 The company purchased $1,000 of office supplies for cash. Note: Enter debits before credits. Date General Journal Debit Credit April 03 The company paid $2,400 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. Note: Enter debits before credits. Date General Journal Debit Credit April 10 The company paid $1,600 cash for two weeks' salaries earned by employees. Note: Enter debits before credits. Date General Journal Debit Credit April 14 The company collected $8,000 cash for commissions earned. Note: Enter debits before credits. Date General Journal Debit Credit April 24 The company paid $1,600 cash for two weeks' salaries earned by employees. Note: Enter debits before credits. Date General Journal Debit Credit April 28 . The company paid $350 cash for minor repairs to the company's computer. Note: Enter debits before credits. Debit General Journal Date Credit April 29 The company paid $750 cash for this month's telephone bill. Note: Enter debits before credits. Debit Credit Date General Journal April 30 The company paid $1,500 cash in dividends. Note: Enter debits before credits. Date General Journal Debit Credit April 30 Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30. ADVENTURE TRAVEL Unadjusted Trial Balance April 30 Account Title Debit Credit 101: Cash 106: Accounts receivable S 124: Office supplies 128: Prepaid insurance 167: Computer equipment 168: Accumulated depreciation Computer equipment 209: Salaries payable 307: Common stock 318: Retained earnings 319: Dividends 405: Commissions earned 612: Depreciation expense Computer equipment 622: Salaries expense 637: Insurance expense 640: Rent expense 650: Office supplies expense 684: Repairs expense 688: Telephone expense Total $ 0 $ 0
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