Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

On April 1, Robert King created a new travel agency, King Travel. The following transactions occurred during the company's first month. April 2 King invested $44,000 cash and computer equipment worth $22,200 in the company in exchange for its common stock. April 3 The company rented furnished office space by paying $2,000 cash for the first month's (April) rent. April 4 The company purchased $2,000 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 $1,540 cash for two weeks' salaries earned by employees. April 24 The company collected $12,000 cash for commissions revenue. April 28 The company paid $1,540 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 $600 cash for this month's telephone bill. April 30 The company paid $1,700 cash in dividends. Information for month-end adjustments follows: a. Prepaid insurance of $100 expired this month. b. At the end of the month, $950 of office supplies are still available. c. This month's depreciation on computer equipment is $370. d. Employees earned $616 of unpaid and unrecorded salaries as of month-end. e. The company earned $1,810 of commissions revenue that is not yet recorded at month-end. Requirement General Journal General Ledger Trial Balance Income Statement St of Retained Balance Sheet Post Closing Earnings Prepare the required journal entries, adjusting entries, and closing entries for King Travel.

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

Cost management a strategic approach

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

5th edition

73526940, 978-0073526942

More Books

Students also viewed these Accounting questions