Question
PLEASE help I am stuck On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first
PLEASE help I am stuck
On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month.
April 2 Nozomi invested $44,000 cash and computer equipment worth $25,000 in the company in exchange for its common
stock.
April 3 The company rented furnished office space by paying $2,100 cash for the first month's (April) rent.
April 4 The company purchased $1,800 of office supplies for cash.
April 10 The company paid $2,520 cash for a 12-month insurance policy. Coverage begins on April 11.
April 14 The company paid $1,100 cash for two weeks' salaries earned by employees.
April 24 The company collected $11,500 cash for commissions revenue.
April 28 The company paid $1,100 cash for two weeks' salaries earned by employees.
April 29 The company paid $400 cash for minor repairs to computer equipment.
April 30 The company paid $1,400 cash for this month's telephone bill
April 30 The company paid $1,530 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 Equipment
209 Salaries Payable
307 Common Stock
Retained Earnings
Dividends
403 Commissions Revenue
612 Depreciation Expense Computer Equipment
622 Salaries Expense
637 Insurance Expense
640 Rent Expense
650 Office Supplies Expense
684 Repairs Expense
688 Telephone Expense
901Income Summary
Use the following information to prepare adjusting entries:
Prepaid insurance of $140 expired this month.
At the end of the month, $600 of office supplies are still available.
This month's depreciation on computer equipment is $600.
Employees earned $450 of unpaid and unrecorded salaries as of month-end.
The company earned $2,050 of commissions revenue that is not yet recorded at month-end.
Required:
1. & 2. Prepare journal entries to record the transactions for April and post them to ledger accounts in Requirement 6B GL tab. The company records prepaid and unearned items in balance sheet accounts.
Using account balances from Requirement 6B GL tab, prepare an unadjusted trial balance as of April 30.
Journalize the adjusting entries for the month, and then post to the ledger on Requirement 6B GL tab, using April 30 Adjusted as the date.
5a. Using adjusted account balances from Requirement 6B GL tab, prepare an adjusted trial balance as of April 30.
5b. Prepare the income statement for the month of April 30.
5c. Prepare the statement of retained earnings for the month of April 30.
5d. Prepare the balance sheet at April 30.
6a. Prepare journal entries to close the temporary accounts and then post to Requirement 6B GL tab, using April 30 Close as the date.
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