The Following information applies to the questions displayed below.
On April 1, 2015, Jlro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month.
On April 1 Nozomi invested $49,000 cash and computer equipment worth $35,000 in company In exchange for common stock.
2 The company rented furnished office space by paying $2,000 cash for the first month's April, rent.
3 The company purchased $1,400 of office supplies for cash.
The company paid $2,100 cash for the premium on a 12-month insurance policy. Coverage begins on April 11.
4 The company paid $1500 cash for two weeks salaries earned by employee.
5 The company collected $8,500 cash on commissions from airlines on ticket, obtained for customers.
28 The company Paid $1,500 cash for two weeks salaries earned by employee.
29 The company Paid $500 cash for minor repairs to the company's computer.
30 The company paid $1,500 cash for this month's telephone bill.
30 The company paid $1,700 cash in dividends.
The company's chart of accounts follows:
| 101 |
Cash |
405 |
Commissions Earned |
| 106 |
Accounts Receivable |
612 |
Depreciation Expense-Computer Equip, |
| 124 |
Office Supplies |
622 |
Salaries Expense |
| 128 |
Prepaid Insurance |
637 |
insurance Expense |
| 167 |
Computer Equipment |
640 |
Rent Expense |
| 168 |
Accumulated Depreciation-Computer Equip. |
650 |
Office Supplies Expense |
| 209 |
Salaries Payable |
684 |
Repairs Expense |
| 307 |
Common Stock |
688 |
Telephone Expense |
| 318 |
Retained Earnings |
901 |
Income Summary |
| 319 |
Dividends |
|
|
Use the following information in Part 4:
a. Two-thirds (or $117) of one month's Insurance coverage has expired.
b. At the end of the month, $500 of office supplies is still available.
c. This month's depredation on the computer equipment is $300.
d. Employees earned $580 of unpaid and unrecorded salaries as of month-end.
e. The company earned $1,800 commissions that are not yet billed at month end.
1. The general ledger and all the necessary accounts are provided in Part 6.2. Post all journal entries, adjusting entries and closing entries to the general ledger given in Part 6.2
2. Prepare journal entries to record the transactions for April and post them to the ledger accounts in Part 6.2. The company records prepaid and unearned items in balance sheet accounts.
3. Using account balances from part 6.2. prepare an unadjusted trial balance as of April 30.
4. Journalize the adjusting entries for the month and prepare the adjusted trial balan.
5.1 Prepare the income statement for the month of April 30, 2015.
5.2 Prepare the statement of owner's equity for the month of April 30, 2015.
5.3 Prepare the balan. sheet at April 30, 2015.
6.1 Prepare journal entries to close the temporary accounts and then post to section 6.2.
6.2 Post the journal entries to the ledger.
7. Prepare a post-closing trial balance.