Question
On December 1, 2015 John Trap created a new travel agency, Trap Adventures, Inc. providing exclusive adventure trips. The following transactions occurred during December 2015.
On December 1, 2015 John Trap created a new travel agency, Trap Adventures, Inc. providing exclusive adventure trips. The following transactions occurred during December 2015. (NOTE: There are no beginning balances this is a new company.)
Dec
1st John Trap invested $60,000 cash in the company for common stock.
2nd Purchase office equipment for $17,500 cash.
2nd The company rented furnished office space by paying $18,000 cash for the first six months (December 2015 May 2016) rent.
3rd The company purchased $1,500 of office supplies on account.
10th The company paid $3,600 cash for the premium on a 12-month insurance policy.
14th The company paid $10,750 cash for two weeks' salaries earned by employees.
24th The company collected $54,000 cash on commissions from airlines on tickets obtained for customers.
28th The company paid $12,125 cash for two weeks' salaries earned by employees.
29th The company paid $350 cash for minor repairs to the company's computer.
30th The company paid $450 cash for this month's telephone bill. 30 Dividends of $3,000 cash were paid.
Adjustment Data:
One month's insurance coverage has expired.
The company occupied the office space for the month of December.
At the end of the month, $600 of office supplies are still available.
This month's depreciation on the computer equipment is $325.
Employees earned $525 of unpaid and unrecorded salaries as of month-end.
ALREADY DONE( JOURNAL ENTRIES, UNADJUSTED TRIAL BALANCE AND ADJUSTED JOURNAL ENTRIES)
(I NEED) Create journal entries to record the transactions that occurred during the month of December.
Prepare an adjusted trial balance.
Prepare an income statement, statement of stockholders equity, and classified balance sheet.
Create closing journal entries to close all temporary accounts.
Prepare post-closing trial balance.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started