On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred…
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Question “On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred…”
On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company’s first month. April i Nozomi invested $30,000 cash and computer equipment worth $20,000 in the company in exchange for common stock. 2 The company rented furnished office space by paying $1,800 cash for the first month’s (April) rent. 3 The company purchased $1,000 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 $1,600 cash for two weeks’ salaries earned by employees. 24 The company collected $8,000 cash for commissions earned. 28 The company paid $1,600 cash for two weeks’ salaries earned by employees. 29 The company paid $350 cash for minor repairs to the company’s computer. 30 The company paid $750 cash for this month’s telephone bill. 30 The company paid $1,500 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 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, $600 of office supplies are still available. c. This month’s depreciation on the computer equipment is $500. d. Employees earned $420 of unpaid and unrecorded salaries as of month-end. e. The company earned $1,750 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.
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.
Complete this question by entering your answers in the tabs below. Req 1 and Req 3 Req 4 Adj Req 4 Adj Entries Trial Bal Req 5A Req 5B Req 5C Req 6A Req 6B GL Req 7 Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30. Credit Debit 27,000 0x 1,000 2,400 20,000 ADVENTURE TRAVEL Unadjusted Trial Balance April 30 Account Title 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 earned 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 $ $ 50,000 0 1,500 8,000 0X 3,200 0X 1,800 350 750 58,000 $ 58,000 < Req 1 and 2 Req 4 Adj Entries >
General Ledger accounts 101: Cash Debit 30,000 106: Accounts receivable Debit Credit Credit Balanc Date April 30 2000 1,800 1,000 2,400 Date April 1 April 2 April 3 April 10 April 24 April 28 April 29 April 14 April 30 April 30 Balance 30,000 28,200 27,200 24,800 32,800 31,200 30,850 29,250 8,000 1,600 350 1,600 128: Prepaid insurance Debit Credit Date Balanc Date April 3 April 30 Adj. 124: Office supplies Debit Credit 1,000 400 Balance 1,000 600 167: Computer equipment Debit Credit ~ 20,000 168: Accumulated depreciation-Computer equ Debit Credit Balanc Date April 1 Date Balance 20,000 209: Salaries payable Debit Credit 420 307: Common stock Debit Credit Date Date April 30 Adj. Balanc Balance 420 ✓
Req 1 and Req3 Req 4 Adj Req 4 Adj Entries Trial Bal Req 5A Req 5B Req 5C Req 6A Req 6B GL Req 7 Prepare journal entries to close the temporary accounts and then post to Req 6B General Ledger, using April 30 Close as the date. No General Journal Credit Date April 30 Debit 9,750 Commissions earned Income summary 9,750 April 30 7,553 Income summary Rent expense Salaries expense Repairs expense Telephone expense Insurance expense Office supplies expense Depreciation expense-Computer equip. စစစစစစစစစစစစစစ 1,800 3,620 350 750 133 400 500 April 30 2,197 Income summary Retained earnings 2,197 April 30 1,500 Retained earnings Dividends 1,500 < Req 5C Req 6B GL >
Req 1 and Req3 Req 4 Adj Req 4 Adj Entries Trial Bal Req 5A Req 5B Req 5C Req 6A Req 6B GL Req 7 Prepare the balance sheet at April 30. $ ADVENTURE TRAVEL Balance Sheet April 30 Assets Cash Accounts receivable Office supplies Prepaid insurance Computer equipment $ Accumulated depreciation Computer equip. Total assets Liabilities Salaries payable 27,000 1,750 600 2,267 20,000 (500) 19,500 51,117 $ $ 420 Equity Common stock 50,697 X Total equity Total liabilities and equity 50,697 51,117 $ < Req 5B Req 6A >
Complete this question by entering your answers in the tabs below. Req 1 and Req 3 Req 4 Adj Req 4 Adj Entries Trial Bal Req 5A Req 5B Req 5C Req 6A Req 6B GL Req 7 Prepare the income statement for the month of April 30. ADVENTURE TRAVEL Income Statement For Month Ended April 30 Revenues: Commissions earned $ 9,750 Expenses: Depreciation expense—Computer equip. Salaries expense Insurance expense Rent expense Telephone expense Office supplies expense Repairs expense Looooooo 500 3,620 133 1,800 750 400 350 Total expenses Net income 7,553 2,197 $ < Req 4 Adj Trial Bal Req 5B >
318: Retained earnings Debit Credit 319: Dividends Debit Credit Balance Date Balanc Date April 30 Close 405: Commissions earned Debit Credit 8,000 612: Depreciation expense-Computer equip. Date Debit Credit Balanc Date April 24 April 30 Close Balance 8,000 637: Insurance expense Debit Credit Date Balanc Date April 14 April 28 April 30 Close 622: Salaries expense Debit Credit L 1,600 1,600 Balance 1,600 3,200 640: Rent expense Debit Credit 1,800 650: Office supplies expense Debit Credit Date Balanc Balance 1,800 Date April 30 Close April 2 684: Repairs expense Debit Credit 1,800X Date April 2 Balanc Balance 1,800 688: Telephone expense Debit Credit 750 || Date April 30 X 1,800
Req 1 and Req3 Req 4 Adj Req 4 Adj Entries Trial Bal Req 5A Req 5B Req 5C Req 6A Req 6B GL Req 7 Prepare a post-closing trial balance. Credit ADVENTURE TRAVEL Post-Closing Trial Balance April 30 Account Title Cash $ Accounts receivable Computer equipment Office supplies Prepaid insurance Accumulated depreciation—Computer equip. Salaries payable Retained earnings Debit 27,000 1,750 20,000 600 2,267 500 420 50,697 X Totals $ 51,617 $ 51,617 Req 6B GL Req 7 )
Answer
750 Apr-30 Telephone expense cash 750 1500 Apr-30 Dividends cash 1500 Adjusting entries Insurance expense Prepaid insurance 133 400 Office supplies expense office supplies 400 C. 500 dep. Expense-computer Total dep.-computer 420 Salaries expense salary salaries payable 420 E. 1750 Closed entries 9750 Commissions earned Income Summary 97507553 1 252 Income summ. Expense –computer Salaries expense Insurance expense Rent expense Supplies expense Repairs expense Phone expense 500 3620 133 800 400 350 350 750 2197 Income summary Retained Earnings 2197 1500 Dividends 1500
1800 1800 18000 Date Id Salaries payable Debit Credit Balance 4 2014201 Office supplies Date Debit Credit Balance Apr-03 1000 1000 Ib. 4001 6001 Date Th prepaid insurance Debit credit Balance Apr-10 2400 21971 15001 6 971 balance 2400 2267 T TT Salaries cost Date Debitcredit Balance Apr-02 Balance Date lbs. office supplies expense Debit Credit Balance 400 400 Date dep. Date c. Accounts receivable Debit Credit 1 1750 I Balance 1750)
Adjustments Unadjusted Trial Balance 27000 Adjusted Trial Balance 27000 600 1000 2400 20000 433 2267 20000 500 420 500 50000 50000 1 1500 15000 Cash Accounts receivable Prepaid insurance Office supplies Computer equipment Common stock Dividends Commissions Earned dep. Expense-computer Salaries expense Insurance expense Rent expense Office supplies expense Repairs expense Telephone expense Total 8000 17501 9750 500 3200 420 133 1800 400 3620 133 1800 400 350 750 6067060670 350 7501 58000 58000 3203_ 3203 Income statement Commissions earned 1 9750 Less:expenses dep. Expense-computer Salaries expense Insurance expense Rent expenseOffice supplies expense Repairs expense Telephone expenses Total 8000 17501 9750 500 3200 420 133 1800 400 3620 133 800 350 750 60670670 350 7501 58000 3203_ 3203 Income statement Commissions earned 1 9750 Less:expenses dep.
Balance sheet Cash Cash Accounts receivable Computer equipment Total assets 27000 1750 600 2267 20000 51117 Liabilities Salaries to be paid 420 Equity Common stock Retained Earnings Total liabilties and equity 50000 697 50697 51617 51617 600 600 600 Post-closing trial balance Cash Cash Accounts receivable Computer equipment Prepaid insurance Computer supplies Salary payable Common stock retained earnings total 2267 20000 500 51617 51617 51617 51617 697 517 51617 51617 5161751617 51617 51617 517 51617 51617 51617 51617 51617 697 51617 697 51617 697 51617 797 517 697 51617 697 51617 697 51617 697 51617 697 51617 697 51617 697 517 51617 697 51617 51617 51617 51617 51617 51617 51617 51617 51617 51617 5161617 51617 51617 51617 51617 51617 51617 51617 51617 51617
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