On April 1, 2010, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month.
| April 1 |
Nozomi invested $30,000 cash and computer equipment worth $20,000 in the business. |
| 2 |
Rented furnished office space by paying $1,800 cash for the first month's (April) rent. (Hint: Adventure Travel debited Rent Expense for this payment.)
|
| 3 |
Purchased $1,000 of office supplies for cash. |
| 10 |
Paid $2,400 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. |
| 14 |
Paid $1,600 cash for two weeks' salaries earned by employees. |
| 24 |
Collected $8,000 cash on commissions from airlines on tickets obtained for customers. |
| 26 |
Paid another $1,600 cash for two weeks' salaries earned by employees. |
| 27 |
Paid $350 cash for minor repairs to the company's computer. |
| 27 |
Paid $750 cash for this month's telephone bill. |
| 28 |
Nozomi withdrew $1,500 cash for personal use. |
| 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 |
| 301 |
J. Nozomi, Capital |
688 |
Telephone Expense |
| 302 |
J. Nozomi, Withdrawals
1-Prepare journal entries to record the transactions for April. The company records prepaid and unearned items in balance sheet accounts
2- Prepare an unadjusted trial balance as of April 30.
3- Use the following information to journalize and post adjusting entries for the month
4- Prepare the income statement and the statement of owner's equity for the month of April and the balance sheet at April 30, 2010.
|
901 |
Income Summary
|