would appreciate help correcting any mistakes I made so far, and then also with the General Ledger Accounts and the Post Closing Trial Balance. thanks !
On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month April 1 Nozomi invested $45,000 cash and computer equipment worth $30,000 in the company in exchange for common stock. 2 The company rented furnished office space by paying $2,300 cash for the first month's (April) rent. 3 The company purchased $1,400 of office supplies for cash. 10 The company paid $2,400 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. 14 The company paid $1,500 cash for two weeks' salaries earned by employees. 24 The company collected $16,000 cash for commissions revenue. 28 The company paid $1,500 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 $1,100 cash for this month's telephone bill. 30 The company paid $2,400 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 405 Commissions Revenue 612 Depreciation Expense-Computer Equip. 622 Salaries Expense 637 Insurance Expense 640 Hent Expense 650 office supplies Expense 684 Repairs Expense 688 Telephone Expense Theme 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 Revenue 612 Depreciation Expense-Computer Equip. 622 Salaries Expense 637 Insurance Expense 640 Rent Expense 650 Office Supplies Expense 684 Repairs Expense 688 Telephone Expense 901 Income Summary Use the following information: a. Prepaid insurance of $133 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 $500. d. Employees earned $480 of unpaid and unrecorded salaries as of month-end. e. The company earned $1,550 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 Requirement 6b. The 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. 25 No Date General Journal Debit Credit 1 April 01 Cash Computer equipment Common stock 45,000 30,000 75,000 2 April 02 Rent expense Cash 2,300 38 2,300 3 April 03 Office supplies Cash 1,400 1,400 ces April 10 Prepaid insurance Cash 2,400 2,400 5 April 14 Salaries expense Cash 1,500 1,500 6 April 24 Cash 16,000 Commissions revenue 16,000 7 April 28 Salaries expense Cash 1,500 1,500 5 April 14 Salaries expense Cash 1,500 1,500 6 April 24 16,000 Cash Commissions revenue 16,000 7 April 28 Salaries expense Cash 1,500 1,500 8 April 29 500 Repairs expense Cash 500 9 April 30 Telephone expense Cash 1,100 1.100 10 April 30 Dividends Cash 2,400 2,400 Unadjusted Trial Balance April 30 Account Title Debit Credit $ 47,900 0 1,400 2,400 30,000 0 0 $ 75,000 101: Cash 106: Accounts receivable 124: Office supplies 128: Prepaid insurance 167: Computer equipment 168: Accumulated depreciation - Computer equipment 209: Salaries payable 307: Common stock 318: Retained earnings 319: Dividends 405: Commissions revenue 612: Depreciation expense-Computer equipment 622: Salaries expense 637: Insurance expense 640: Rent expense 650: Office supplies expense 684: Repairs expense 688: Telephone expense Total 0 2,400 16,000 0 3,000 0 2,300 0 500 1,100 91,000 $ $ 91,000 No Transaction General Journal Debit Credit 1 a. Insurance expense Prepaid insurance 133 133 2 b. Office supplies expense Office supplies 700 700 3 c. Depreciation expense Computer equip. Accumulated depreciation --Computer equip. 500 500 4 d Salaries expense Salaries payable 480 480 5 Accounts receivable Commissions revenue 1,550 1,550 Prev 1 of 1 Next OOO FO 1
