On Jan. 2, 2017, Angie Smith created a new travel agency, Angie Travel.

The following transactions occurred during the companys first month:

Jan. 2- Smith invested $40,000 cash and computer equipment worth $10,000 in the company.

Jan 2- The company rented furnished office space by paying $1,800 cash for the first months rent.

Jan 3- The company purchased $1,000 of office supplies from Office Depot on account granted to small business owners.

Jan 10- The company paid $ 3,600 cash for the premium on a 12-month insurance policy. Coverage begins on Jan 11.

Jan 20- The company collected $6,000 cash on commissions from airlines on tickets obtained for customers.

Jan 24- The company paid $1,600 cash for two weeks salaries earned by employees.

Jan 25- The company paid $450 cash for minor repairs to the companys computer.

Jan 30- The company received this months telephone bill due on Feb. 10 for $650.

Jan 31- the company recorded $800 salary for employees for one week ending Jan. 31 to be paid on Feb. 7th.

Jan 31- Smith withdrew $1,500 cash from the company for personal use.

The companys chart of accounts follows:

101 Cash

102 Accounts Receivable

104 Office Supplies

112 Prepaid Insurance

115 Computer Equipment

116 Accumulated DepreciationComputer Equip.

201Act/Payable

208 Salaries Payable

301 A. Smith, Capital

302 A. Smith, Withdrawals

401 Commissions Earned

512 Depreciation ExpenseComputer Equip.

522 Salaries Expense

530 Insurance Expense

540 Rent Expense

550 Office Supplies Expense

560 Repairs Expense

580 Telephone Expense

600 Income Summary Required:

Task # 1: Record the above transactions in the General Journal, and post them to T-accounts, then complete the Trial balance sheet of Excel file.

Task # 2: Record adjusting entries in the General journal and post them to the accounts using following information:

a. Two-thirds of one months insurance coverage has expired.

b. At the end of the month, $500 of office supplies is still available.

c. This months depreciation on the computer equipment is $500.

d. Employees earned $800 of unpaid and unrecorded salaries as of month-end.

e. The company earned $2,000 of commissions that are not yet billed at month-end.

Task # 3: Complete the worksheet by transferring the Trial balance, necessary adjusting entries, and arriving at the adjusted Trial Balance.

Task #4: Prepare Income statement, Statement of Owners Equity, and balance sheet for Angie Travel. Record the closing entries for January of 2017, then calculate the following ratio: Current ratio explain what does it measure?