In: Accounting
April | 1 | Nozomi invested $37,000 cash and computer equipment worth $25,000 in the 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 $1,300 of office supplies for cash. | |||
10 | The company paid $2,500 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. | |||
14 | The company paid $1,800 cash for two weeks' salaries earned by employees. | |||
24 | The company collected $13,500 cash for commissions earned. | |||
28 | The company paid $1,800 cash for two weeks' salaries earned by employees. | |||
29 | The company paid $450 cash for minor repairs to the company's computer. | |||
30 | The company paid $1,450 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:
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.
1. Journal Entries -
2. Unadjusted Trial Balance -
3. Adjusting Entries -
4. Adjusted Trial Balance -
5. Ledgers -
6. Income Statements -
7. Statement of Retained Earnings -
8. Balance Sheet -
9. Closing Entries -
10. Post Closing Trial Balance -