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The folowing information apples to the questions displayed below) On April 1, 2015, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions
The folowing information apples to the questions displayed below) On April 1, 2015, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month April 1 Nozomi invested $33,000 cash and computer equipment worth $30,000 in the company in exchange for common stock. 2 The company rented furnished office space by paying $2,800 cash for the first month's April) rent. 3 The company purchased $1,900 of office supplies for cash. 10 The company paid $2,000 cash for the premium on a 12-month insurance policy. Coverage begins on April 11 14 The company paid S1,600 cash for two weeks' salaries earned by employees. 24 The company collected $10,500 cash on commissions from airlines on tickets obtained for customers 28 The company paid $1,600 cash for two weeks' salaries earned by employees. 29 The company paid $300 cash for minor repairs to the company's computer. 30 The company paid S1,300 cash for this month's telephone bil. 30 The company paid $1,900 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 6B4 Repairs Expense 688 Telephone Expense 901 Income Summery Use the following information in Part 4: a. Two-thirds (or $111) of one month's Insurance coverage has expired. b. At the end of the month, $500 of office supplies are still available. c. This month's depreciation on the computer equipment is $500 d. Employees earned $600 of unpaid and unrecorded salaries as of month-end. e. The company eamed $2,450 of commissions that are not yet billed at month-end. References Section Break Problem 3-6A Applying the accounting cycle LO P1, P2, P3, P4, PS
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