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Problems 3 - 5 A ( Algo ) Applying the accounting cycle LO P 1 , P 2 , P 3 , P 4 ,
Problems A Algo Applying the accounting cycle LO P P P P P P
On April Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the companys first month.
April Nozomi invested $ cash and computer equipment worth $ in the company in exchange for common stock.
April The company rented furnished office space by paying $ cash for the first months April rent.
April The company purchased $ of office supplies for cash.
April The company paid $ cash for the premium on a month insurance policy. Coverage begins on April
April The company paid $ cash for two weeks' salaries earned by employees.
April The company collected $ cash for commissions revenue.
April The company paid $ cash for two weeks' salaries earned by employees.
April The company paid $ cash for minor repairs to the company's computer.
April The company paid $ cash for this month's telephone bill.
April The company paid $ cash in dividends.
The company's chart of accounts follows:
Cash Commissions Revenue
Accounts Receivable Depreciation ExpenseComputer Equipment
Office Supplies Salaries Expense
Prepaid Insurance Insurance Expense
Computer Equipment Rent Expense
Accumulated DepreciationComputer Equipment Office Supplies Expense
Salaries Payable Repairs Expense
Common Stock Telephone Expense
Retained Earnings Income Summary
Dividends
Use the following information:
Prepaid insurance of $ has expired this month.
At the end of the month, $ of office supplies are still available.
This months depreciation on the computer equipment is $
Employees earned $ of unpaid and unrecorded salaries as of monthend.
The company earned $ of commissions that are not yet billed at monthend.
Required:
& Prepare journal entries to record the transactions for April and post them to the ledger accounts in Requirement b The company records prepaid and unearned items in balance sheet accounts.
Using account balances from Requirement b prepare an unadjusted trial balance as of April
Journalize the adjusting entries for the month and prepare the adjusted trial balance.
a Prepare the income statement for the month of April
b Prepare the statement of retained earnings for the month of April
c Prepare the balance sheet at April
a Prepare journal entries to close the temporary accounts and then post to Requirement b
b Post the journal entries to the ledger.
Prepare a postclosing trial balance.
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