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On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the companys first month. April 2 Nozomi invested

On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the companys first month.

April 2

Nozomi invested $36,000 cash and computer equipment worth $25,000 in the company in exchange for its common stock.

April 3

The company rented furnished office space by paying $2,100 cash for the first months (April) rent.

April 4

The company purchased $1,700 of office supplies for cash.

April 10

The company paid $1,800 cash for a 12-month insurance policy. Coverage begins on April 11.

April 14

The company paid $1,600 cash for two weeks' salaries earned by employees.

April 24

The company collected $12,000 cash for commissions revenue.

April 28

The company paid $1,600 cash for two weeks' salaries earned by employees.

April 29

The company paid $300 cash for minor repairs to computer equipment.

April 30

The company paid $850 cash for this month's telephone bill.

April 30

The company paid $1,520 cash in dividends.

The company's chart of accounts follows:

101

Cash

403

Commissions Revenue

106

Accounts Receivable

612

Depreciation ExpenseComputer Equipment

124

Office Supplies

622

Salaries Expense

128

Prepaid Insurance

637

Insurance Expense

167

Computer Equipment

640

Rent Expense

168

Accumulated DepreciationComputer Equipment

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 to prepare adjusting entries:

  1. Prepaid insurance of $100 expired this month.
  2. At the end of the month, $800 of office supplies are still available.
  3. This months depreciation on computer equipment is $400.
  4. Employees earned $420 of unpaid and unrecorded salaries as of month-end.
  5. The company earned $1,900 of commissions revenue that is not yet recorded at month-end.

Required: 1. & 2. Prepare journal entries to record the transactions for April and post them to ledger accounts in Requirement 6B GL tab. The company records prepaid and unearned items in balance sheet accounts. 3. Using account balances from Requirement 6B GL tab, prepare an unadjusted trial balance as of April 30. 4. Journalize the adjusting entries for the month, and then post to the ledger on Requirement 6B GL tab, using April 30 Adjusted as the date. 5a. Using adjusted account balances from Requirement 6B GL tab, prepare an adjusted trial balance as of April 30. 5b. Prepare the income statement for the month of April 30. 5c. Prepare the statement of retained earnings for the month of April 30. 5d. Prepare the balance sheet at April 30. 6a. Prepare journal entries to close the temporary accounts and then post to Requirement 6B GL tab, using April 30 Close as the date. 6b. Post the journal entries to the ledger. 7. Prepare a post-closing trial balance.

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