Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer just #2, #4, and #5. Thank you. Problem 3-7A On April 1, 2013, Jiro Nozomi created a new travel agency, Adventure Travel. The

Please answer just #2, #4, and #5. Thank you. image text in transcribed
image text in transcribed
Problem 3-7A On April 1, 2013, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month. ting cycle P1 P2 P3 P4 P5 April Nozomi invested $30.000 cash and computer equipment worth $20,000 in the company in ex- change for common stock. 2 The company rented furnished office space by paying $1,800 cash for the first month's (Apnil) rent. 3 The company purchased $1,000 of office supplies for cash. 10 The company paid $2,400 cash for the premium on a 12-month insurance policy. Coverage begins on April 11 14 The company paid S1,600 cash for two weeks' salaries earned by employees. 24 The company collected $8,000 cash on commissions from airlines on tickets obtained for customers. 28 The company paid $1,600 cash for two weeks' salaries earned by employees. 29 The company paid $350 cash for minor repairs to the company's computer 30 The company paid $750 cash for this month's telephone bill. 30 The company paid $1,500 cash for dividends. The company's chart of accounts follows: 101 Cash 106 Accounts Receivable 24 Office Supplies 128 Prepaid Insurance 167 Computer Equipment 168 Accumulated 209 Salaries Payable 307 Common Stock 318 Retained Earnings 319 Dividends 405 Commissions Earned 612 Depreciation 622 637 640 650 684 688 Salaries Expense Insurance Expense Rent Expense Office Supplies Expense Repairs Expense Telephone Expense Depreciation-Computer Equip. Expens Equip. 901 Income Required 1. Use the balance column format to set up each ledger account listed in its chart of accounts. 2. Prepare fournal entries to record the transactions for April and post them to the ledger accounts. The company records prepaid and unearned items in balance sheet accounts. Prepare an unadjusted trial balance as of April 30. Check ) Unadl, trial balance otals, $58,000 4.) Use the following information to journalize and post adjusting entries for the month: a. Two-thirds (or $133) of one month's insurance coverage has expired b. At the end of the month, $600 of office supplies are still available. (4al Dr. Insurance Expense, $133 This month's depreciation on the computer equipment is $500

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

Auditing Employee Management

Authors: Kelli W. Vito, SPHR, CCP

1st Edition

0894137190, 9780894137198

More Books

Students also viewed these Accounting questions

Question

2. Describe why we form relationships

Answered: 1 week ago

Question

5. Outline the predictable stages of most relationships

Answered: 1 week ago