Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On April 1, Paula Parker created a new travel agency, Parker Travel. The following transactions occurred during the company's first month. April 2 Parker invested

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
On April 1, Paula Parker created a new travel agency, Parker Travel. The following transactions occurred during the company's first month. April 2 Parker invested $41,000 cash and computer equipment worth $20,400 in the company in exchange for its common stock. April 3 The company rented furnished office space by paying $2,500 cash for the first month's (April) rent. April 4 The company purchased $1,400 of office supplies for cash. April 10 The company paid $2,880 cash for a 12-month insurance policy. Coverage begins on April April 14 The company paid $1,960 cash for two weeks' salaries earned by employees. April 24 The company collected $22,000 cash for commissions revenue. April 28 The company paid $1,960 cash for two weeks' salaries earned by employees. April 29 The company paid $650 cash for minor repairs to computer equipment. April 30 The company paid $450 cash for this month's telephone bill. April 30 The company paid $2,000 cash in dividends. Information for month-end adjustments follows: a. Prepaid insurance of $160 expired this month. b. At the end of the month, $800 of office supplies are still available. c. This month's depreciation on computer equipment is $340. d. Employees earned $784 of unpaid and unrecorded salarles as of month-end. e. The company earned $1,780 of commissions revenue that is not yet recorded at month-end. Journal entry worksheet 1 7 At month-end, $800 of supplies are still available. Record the required adjusting entry, if any. Note: Enter debits before credits. Journal entry worksheet 1 11 12 13 14 Record the entry to close the revenue account(s). Note: Enter debits before credits. Journal entry worksheet (1) ,12 13 14 15 Record the entry to close the expense account(s). Note: Enter debits before credits. Journal entry worksheet (1) ,12 13 14 Record the entry to close Income summary. Note: Enter debits before credits. Journal entry worksheet 1 13 14 Record the entry to close the owner's withdrawals account. Note: Enter debits before credits

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Auditing

Authors: Knapp, Rittenberg

1st Edition

1133731244, 978-1133731245

More Books

Students also viewed these Accounting questions