Answered step by step
Verified Expert Solution
Question
1 Approved Answer
questions : 1-Prepare journal entries to record the transactions for April and post them to the ledger accounts 2. Prepare an unadjusted trial balance at
questions : 1-Prepare journal entries to record the transactions for
Following his recent loss at the U.S. elections, former President Trump has had to return to work. He has decided to open a travel agency, and has asked you to be his intern. He would like you to assist him with recording his monthly business transactions, and preparation of his monthly financial statements. On April 1, 2021, Donald Trump created a new travel agency, Travel with Trump. The following transaction occurred during the company's first month. April 1: Trump invested $20,000 cash and computer equipment worth $40,000 in the company. April 2 . The company rented furnished office space by paying S1,700 cash for the first month's (April) rent April 3: The company purchased $1,100 of office supplies for cash April 10: The company paid $3,600 cash for the premium on a 12 -month insurance policy. Coverage begins on April 11 April 14: The company paid \$1,800 cash for two weeks' salaries earned by employees April 24: The company collected $7,900 cash on commissions from airlines on tickets obtained for customers April 28: The company paid \$1,800 cash for two weeks' salaries earned by employees April 29: The company paid $250 cash for minor repairs to the company's computer April 30: The company paid \$650 cash for this month's telephone bill April 30: Donald Trump withdrew \$1,500 cash from the company for personal use April and post them to the ledger
accounts
2. Prepare an unadjusted trial balance at as April 30
3. Use the following information to journalize and
post adjusting entries for the month
a) Two-thirds of one month's insurance coverage has
expired
b) At the end of the month, $700 of office supplies
are still available
c) This month's depreciation on the computer
equipment is $600
d) Employees earned $320 of unpaid and
unrecorded salaries as at month end
e) The company earned $1,650 of commissions that
are not vet billed at month end
4. Prepare the income statement and the statement
of changes in equity for the month of April and the
statement of financial position at April 30, 2021
5. Prepare journal entries to close the temporary
accounts and post these entries to the led
6-Prepare a post closing trial balance
Step 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