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On April 1, Leslie Adams created a new travel agency, Adams Travel. The following transactions occurred during the companys first month. April 2 Adams invested
On April 1, Leslie Adams created a new travel agency, Adams Travel. The following transactions occurred during the companys first month.
April 2 | Adams invested $42,000 cash and computer equipment worth $13,800 in the company in exchange for its common stock. |
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April 3 | The company rented furnished office space by paying $2,200 cash for the first months (April) rent. |
April 4 | The company purchased $2,000 of office supplies for cash. |
April 10 | The company paid $3,240 cash for a 12-month insurance policy. Coverage begins on April 11. |
April 14 | The company paid $2,100 cash for two weeks salaries earned by employees. |
April 24 | The company collected $16,000 cash for commissions revenue. |
April 28 | The company paid $2,100 cash for two weeks salaries earned by employees. |
April 29 | The company paid $800 cash for minor repairs to computer equipment. |
April 30 | The company paid $600 cash for this months telephone bill. |
April 30 | The company paid $2,100 cash in dividends. |
Information for month-end adjustments follows:
Prepaid insurance of $180 expired this month.
At the end of the month, $800 of office supplies are still available.
This months depreciation on computer equipment is $230.
Employees earned $840 of unpaid and unrecorded salaries as of month-end.
The company earned $1,770 of commissions revenue that is not yet recorded at month-end.
Prepare the required journal entries, adjusting entries, and closing entries for Adams Travel. Journal entry worksheet Adams invested $42,000 cash and computer equipment worth $13,800 in the company in exchange for its common stock. Nate: Entar debits before cred ts. Orepare the required journal entries, adjusting entries, and closing entries for Adams Travel. Journal entry worksheet The company rented fumished office space by paying $2,200 cash for the first month's (April) rent. Nate: Enter debits befare cred ts. Use the drop-downs to select the accounts properly included on the income statement. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Use the drop-downs to select the accounts properly included on the balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Begin by selecting "Post-closing" from the drop-down below. Then, for each account, use the drop-down to indicate whether the account is included on the post-closing trial balance. Based on your decisions, the post-closing trial balance will be created. Compare your results with the Trial Balance tabStep by Step Solution
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