Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the following information: a. Prepaid insurance of $111 has expired this month. b. At the end of the month, $700 of office supplies are

image text in transcribed
image text in transcribed
Use the following information: a. Prepaid insurance of $111 has expired this month. b. At the end of the month, $700 of office supplies are still available. c. This month's depreciation on the computer equipment is $400. d. Employees earned $570 of unpaid and unrecorded salaries as of month-end. e. The company earned $2.500 of commissions that are not yet billed at month-end. Required: 1. & 2. Prepare journal entries to record the transactions for April and post them to the ledger accounts in Requireme company records prepaid and unearned items in balance sheet accounts. 3. Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30. 4. Journalize the adjusting entries for the month and prepare the adjusted trial balance. 5a. Prepare the income statement for the month of April 30. 5b. Prepare the statement of retained earnings for the month of April 30. 5c. Prepare the balance sheet at April 30. 6a. Prepare journal entries to close the temporary accounts and then post to Requirement 6b. 6b. Post the journal entries to the ledger. 7. Prepare a post-closing trial balance. Complete this question by entering your answers in the tabs below. Prev 1 of 1 Next > M HCC 9 April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's fir inth. -il 1 Nozomi invested 537,000 cash and computer equipment worth $30,000 in the company in exchange for common stock. 2 The company rented furnished office space by paying $1,700 cash for the first month's (April) rent. 3 The company purchased $1,500 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 $1,200 cash for two weeks' salaries earned by employees 24 The company collected $10,000 cash for commissions earned. 28 The company paid $1,200 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 $1,350 cash for this month's telephone bill 30 The company paid $1,800 cash in dividends. The company's chart of accounts follows: 101 Cash 106 Accounts Receivable 124 Office Supplies 129 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 684 Repairs Expense 688 Telephone Expense Prey 1 of 1 Next > MHC 9

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

Real Estate And Accounting For Beginners

Authors: Nespy Online Marketing

1st Edition

1802242880, 978-1802242881

More Books

Students also viewed these Accounting questions

Question

years ago. d Only using studies which feature empirical data.

Answered: 1 week ago