Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please do it ASAP. On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month.
Please do it ASAP.
On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month. April 1 Nozomi invested $41,000 cash and computer equipment worth $25,000 in the company in exchange for common stock. 2 The company rented furnished office space by paying $2,500 cash for the first month's (April) rent. 3 The company purchased $1,400 of office supplies for cash. 10 The company paid $3,000 cash for the premium on 12-month insurance policy. Coverage begins on April 11. 14 The company paid $900 cash for two weeks' salaries earned by employees. 24 The company collected $13,000 cash for commissions earned. 28 The company paid $900 cash for two weeks' salaries earned by employees. 29 The company paid $450 cash for minor repairs to the company's computer. 30 The company paid $1,250 cash for this month's telephone bill. 30 The company paid $1,600 cash in dividends. The company's chart of accounts follows: 101 Cash 106 Accounts Receivable 124 Office Supplies 128 Prepaid Insurance 167 Computer Equipment 168 Accumulated Depreciation-Computer Equip. 209 Salaries Payable 307 Common Stock 318 Retained Earnings 319 Dividends 405 Commissions Earned 612 Depreciation Expense-Computer Equip. 622 Salaries Expense 637 Insurance Expense 640 Rent Expense 650 Office Supplies Expense 684 Repairs Expense 688 Telephone Expense 901 Income Summary Use the following information: a. Prepaid insurance of $167 has expired this month. b. At the end of the month, $700 of office supplies are still available. c. This month's depreciation on the computer equipment is $500. d. Employees earned $420 of unpaid and unrecorded salaries as of month-end. e. The company earned $2,300 of commissions that are not yet billed at month-end. Required: 1. & 2. Prepare journal entries to record the transactions for April and post them to the ledger accounts in Requirement 6b. The company records prepaid and unearned items in balance sheet accounts. 3. Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30. 4. Journalize the adjusting entries for the month and prepare the adjusted trial balance. 5a. Prepare the income statement for the month of April 30. 5b. Prepare the statement of retained earnings for the month of April 30. 5c. Prepare the balance sheet at April 30. 6a. Prepare journal entries to close the temporary accounts and then post to Requirement 6b. 6b. Post the journal entries to the ledger 6b. Post the journal entries to the ledger. 7. Prepare a post-closing trial balance. % Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Req 4 Adj Entries Req 4 Adj Trial Bal Reg 5A Req 5B Reg 5C Req 6A Req6B GL Req 7 Post the journal entries to the ledger. General Ledger accounts Date 101: Cash Debit 41,000 Credit Date 106: Accounts Receivable Debit Credit 2,300 Balance 2,300 April 30 Adi 2,500 1,400 3,000 900 April 1 April 2 April 3 April 10 April 14 April 24 April 28 April 29 April 30 April 30 Balance 41,000 38,500 37.100 34,100 33,200 46,200 13,000 900 450 1,250 1,600 45,300 44,850 43,600 42,000 Date Balance Balance 124: Office Supplies Debit Credit 1,400 700 128: Prepaid Insurance Debit Credit 3,000 167 April 3 April 30 Adj. 1,400 700 Date April 10 April 30 Adj. 3,000 2,833Step 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