On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the companys first month.
| April | | 1 | | Nozomi invested $38,000 cash and computer equipment worth $30,000 in the company in exchange for common stock. |
| | | 2 | | The company rented furnished office space by paying $1,900 cash for the first months (April) rent. |
| | | 3 | | The company purchased $1,100 of office supplies for cash. |
| | | 10 | | The company paid $2,200 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. |
| | | 14 | | The company paid $1,600 cash for two weeks' salaries earned by employees. |
| | | 24 | | The company collected $14,500 cash for commissions earned. |
| | | 28 | | The company paid $1,600 cash for two weeks' salaries earned by employees. |
| | | 29 | | The company paid $300 cash for minor repairs to the company's computer. |
| | | 30 | | The company paid $1,300 cash for this month's telephone bill. |
| | | 30 | | The company paid $2,000 cash in dividends. |
The company's chart of accounts follows:
| |
| 101 | Cash | 405 | Commissions Earned |
| 106 | Accounts Receivable | 612 | Depreciation ExpenseComputer Equip. |
| 124 | Office Supplies | 622 | Salaries Expense |
| 128 | Prepaid Insurance | 637 | Insurance Expense |
| 167 | Computer Equipment | 640 | Rent Expense |
| 168 | Accumulated DepreciationComputer Equip. | 650 | Office Supplies Expense |
| 209 | Salaries Payable | 684 | Repairs Expense |
| 307 | Common Stock | 688 | Telephone Expense |
| 318 | Retained Earnings | 901 | Income Summary |
| 319 | Dividends | | |
| |
Use the following information:
- Prepaid insurance of $122 has expired this month.
- At the end of the month, $600 of office supplies are still available.
- This months depreciation on the computer equipment is $500.
- Employees earned $550 of unpaid and unrecorded salaries as of month-end.
- The company earned $2,050 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 6b. 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. 4. Journalize the adjusting entries for the month and prepare the adjusted trial balance. 5a. Prepare the income statement for the month of April 30. 5b. Prepare the statement of retained earnings for the month of April 30. 5c. Prepare the balance sheet at April 30. 6a. Prepare journal entries to close the temporary accounts and then post to Requirement 6b. 6b. Post the journal entries to the ledger. 7. Prepare a post-closing trial balance.
Req 1 and 2 Req3 Req 4 Adj Entries Req 4 Adj Trial Bal Req 5A Req 5B Req 5C Req 6A Req 6B GL Req 7 Prepare journal entries to record the transactions for April and post them to the ledger accounts in Requirement 6b. The company records prepaid and unearned items in balance sheet accounts. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 9 10 > Nozomi invested $38,000 cash and computer equipment worth $30,000 in the company in exchange for common stock. Note: Enter debits before credits. Date General Journal Debit Credit April 01 Record entry Clear entry entry View general journal Req 1 and 2 Reg 3 Req 4 Adj Entries Req 4 Adj Trial Bal Req 5A Req 5B Req 5C Req 6A Req 6B GL Req 7 Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30. ADVENTURE TRAVEL Debit Credit Unadjusted Trial Balance April 30 Account Title 101: Cash 106: Accounts receivable 124: Office supplies 128: Prepaid insurance 167: Computer equipment 168: Accumulated depreciationComputer 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 Req 1 and 2 Req3 Req 4 Adj Entries Req 4 Adj Trial Bal Req 5A Req 5B Req 5C Req 6A Req 6B GL Req 7 Journalize the adjusting entries for the month, and then post to the ledger on Req 6B tab, using April 30 Adj. as the date. (Do not round intermediate calculations and round the final answers to nearest whole number.) View transaction list Journal entry worksheet 2 3 4 5 Prepaid insurance of $122 has expired this month. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Rea 2 P A Adi Trial Ball Req 1 and 2 Req3 Req 4 Adj Entries Req 4 Adj Trial Bal Req 5A Req 5B Req 5C Req 6A Req 6B GL Req 7 Using adjusted account balances from Requirement 6b, prepare an adjusted trial balance as of April 30. ADVENTURE TRAVEL Adjusted Trial Balance April 30 Account Title Debit Credit 101: Cash 106: Accounts receivable 124: Office supplies 128: Prepaid insurance 167: Computer equipment 168: Accumulated depreciationComputer 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 Req 1 and 2 Req3 are Req 4 Adj Entries Req 4 Adj Trial Bal desz me to Req 5A Req 5B see sease noten mascota Req 5C Req 6A Req 6B GL Req 7 Prepare the income statement for the month of April 30. ADVENTURE TRAVEL Income Statement For Month Ended April 30 Revenues: Expenses: Total expenses Req 1 and 2 Req 3 Req 4 Adj Entries Req 4 Adj Trial Bal Req 5A Req 5B Req 50 Req 6A Req 6B GL Req 7 Prepare the statement of retained earnings for the month of April 30. (Amounts to be deducted should be entered with a minus sign.) ADVENTURE TRAVEL Statement of Retained Earnings For Month Ended April 30 Retained earnings, April 1 Retained earnings, April 30 Req 1 and 2 Req3 Req 4 Adj Entries Req 4 Adj Trial Bal Req 5A Req 5B Req 5C Req 6A Req 6B GL Req 7 Prepare the balance sheet at April 30. ADVENTURE TRAVEL Balance Sheet April 30 Total assets Total equity Total liabilities and equity Req 1 and 2 Req 3 Req 4 Adj Entries Req 4 Adj Trial Bal Req 5A Req 5B Req 5C Req 6A Req 6B GL Req 7 Prepare journal entries to close the temporary accounts and then post to Req 6B General Ledger, using April 30 Close as the date. View transaction list Journal entry worksheet 2 3 4 Record the entry to close the revenue account(s). Note: Enter debits before credits. General Journal Debit Credit Date April 30 Record entry Clear entry View general journal Req 5C Req 6B GL> Req 1 and 2 Req3 se are the mountain Race sa preto nesse Req 4 Adj Entries Req 4 Adj Trial Bal Req 5A Req 5B Req 5C ano en las cara Req 64 Req 6B GL Req 7 mea ? Post the journal entries to the ledger. General Ledger accounts 101: Cash Debit 106: Accounts Receivable Debit Credit Date Credit Balance Date Balance Date 124: Office Supplies Debit Credit Balance Date 128: Prepaid Insurance Debit Credit Balance 167: Computer Equipment Debit Credit 168: Accumulated Depreciation Computer equipment Debit Credit Balance Date Balance Date 209: Salaries Payable Debit Credit 307: Common Stock Debit Credit Date Balance Date Balance 318: Retained Earnings Debit Credit 319: Dividends Debit Credit Date Balance Date Balance 405: Commissions Earned Debit Credit 612: Depreciation Expense-Computer Equipment Date Debit Credit Balance Date Balance 622: Salaries Expense Debit Credit 637: Insurance Expense Credit Date Balance Date Debit Balance 640: Rent Expense Debit Credit 650: Office Supplies Expense Debit Credit Date Balance Date Balance 684: Repairs Expense Debit Credit 688: Telephone Expense Debit Credit Date Balance Date Balance 901: Income Summary Debit Credit Date Balance Req 1 and 2 Req3 Req 4 Adj Entries Req 4 Adj Trial Bal Req 5A Req 5B Req 5C Req 6A Req 6B GL Req 7 Prepare a post-closing trial balance. ADVENTURE TRAVEL Post-Closing Trial Balance April 30 Account Title Debit Credit Totals
