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GL0402- Based on Problem 4-1A LO C3, P2, P3 On April 1, 2017, Robert King created...

GL0402- Based on Problem 4-1A LO C3, P2, P3

On April 1, 2017, Robert King created a new travel agency, King Travel. The following transactions occurred during the company’s first month.

Apr. 1 King invested $44,000 cash and computer equipment worth $22,200 in the company.
Apr. 2 The company rented furnished office space by paying $2,000 cash for the first month’s (April) rent.
Apr. 3 The company purchased $2,000 of office supplies for cash.
Apr. 10 The company paid $1,800 cash for the premium on a 12-month insurance policy. Coverage begins on April 11.
Apr. 14 The company paid $1,540 cash for two weeks’ salaries earned by employees.
Apr. 24 The company collected $12,000 cash on commissions from airlines on tickets obtained for customers.
Apr. 28 The company paid $1,540 cash for two weeks’ salaries earned by employees.
Apr. 29 The company paid $650 cash for minor repairs to the company’s computer.
Apr. 30 The company paid $600 cash for this month’s telephone bill.
Apr. 30 King withdrew $1,700 cash from the company for personal use.

Information for month-end adjustments follows:

  1. Two-thirds (or $100) of one month’s insurance coverage has expired.
  2. At the end of the month, $950 of office supplies are still available.
  3. This month’s depreciation on the computer equipment is $370.
  4. Employees earned $616 of unpaid and unrecorded salaries as of month-end.
  5. The company earned $1,810 of commissions that are not yet billed at month-end.

Income Statements, Balance Sheet

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