Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following information applies to the questions displayed below.] On April 1, 2015, Jennifer Stafford created a new travel agency, See-lt-Now Travel. The following transactions

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

The following information applies to the questions displayed below.] On April 1, 2015, Jennifer Stafford created a new travel agency, See-lt-Now Travel. The following transactions occurred during the company's first month April 1 Stafford invested $36,000 cash and computer equipment worth $30,000 in the company. 2 The company rented furnished office space by paying $1,900 cash for the first month's (April) rent. 3 The company purchased $1,800 of office supplies for cash 10 The company paid $2,900 cash for the premium on a 12-month insurance policy. Coverage begins on April 11 14 The company paid $1,400 cash for two weeks' salaries earned by employees 24 The company collected $8,500 cash on commissions from airlines on tickets obtained for customers 28 The company paid $1,400 cash for two weeks' salaries earned by employees 29 The company paid $500 cash for minor repairs to the company's computer 30 The company paid $1,300 cash for this month's telephone bill 30 Stafford withdrew $2,200 cash from the company for personal use 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 301 J. Stafford, Capital 302 J. Stafford, Withdrawals 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 90T Income Summarv Use the following information a. Two-thirds of one month's insurance coverage has expired b. At the end of the month, $400 of office supplies are still available c. This month's depreciation on the computer equipment is $500 d. Employees earned $430 of unpaid and unrecorded salaries as at month-end e. The company earned $1,800 of commissions that are not yet billed at month-end 6.2 Post the journal entries to the ledger. (Leave no cells blank - be certain to enter "O" wherever required. Omit the "$" sign in your response.) General Ledger accounts Cash Date Debit Credit Balance April 1 2 3 10 36000 36000 34100 32300 29400 28000 36500 35100 34600 33300 31100 1900 1800 2900 1400 24 28 29 30 30 8500 1400 500 1300 2200 Accounts Receivable Date Debit Credit Balance April 30 Office Supplies Credit Date April 3 30 Debit Balance 1800 1400 1800 400 Prepaid Insurance Date Debit Credit Balance April 10 2900 2900 30 161 2739 Computer Equipment Date Debit Credit Balance April 1 30000 30000 Accumulated Depreciation-Computer Equipment Date Debit Credit Balance April 30 500 500 Salaries Pavable Date Debit Credit Balance April 30 430 430 J. Stafford, Capital Date Debit Credit Balance April 1 30 30 66000 66000 J. Stafford, Withdrawals Date Debit Credit Balance April 3 30 Commissions Earned Date Debit Credit Balance April 24 30 30 Depreciation Expense-Computer Equipment Debit Credit Date April 30 Balance 30 Salaries Expense Date Debit Credit Balance April 14 28 30 30 Insurance Expense Date Debit Credit Balance April 30 30 Rent Expense Credit Date Debit Balance April 2 30 Office Supplies Expense Credit Date April 30 Debit Balance 30 Repairs Expense Date Debit Credit Balance April 29 30 Telephone Expense Credit Date April 30 Debit Balance 30 Income Summary Date Debit Credit Balance April 30 30 30

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

Clinical Audit In Palliative Care

Authors: Irene Higginson

1st Edition

1870905644, 978-1870905640

More Books

Students also viewed these Accounting questions