In: Accounting
PLEASE FILL IN
On April 1, Rita Griffin created a new travel agency, Griffin Travel. The following transactions occurred during the company’s first month.
Apr. | 1 | Griffin invested $45,000 cash and computer equipment worth $15,600 in the company. | ||
Apr. | 2 | The company rented furnished office space by paying $2,500 cash for the first month’s (April) rent. | ||
Apr. | 3 | The company purchased $1,200 of office supplies for cash. | ||
Apr. | 10 | The company paid $2,160 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. | ||
Apr. | 14 | The company paid $1,680 cash for two weeks’ salaries earned by employees. | ||
Apr. | 24 | The company collected $22,000 cash for commissions earned. | ||
Apr. | 28 | The company paid $1,680 cash for two weeks’ salaries earned by employees. | ||
Apr. | 29 | The company paid $800 cash for minor repairs to the company’s computer. | ||
Apr. | 30 | The company paid $400 cash for this month’s telephone bill. | ||
Apr. | 30 | Griffin withdrew $1,800 cash from the company for personal use. |
Information for month-end adjustments follows:
AFTER COMPLETING 19 TRANSACTIONS IN THE GENERAL JOURNAL
GENERAL JOURNAL ENTRIES:
1 Griffin invested $45,000 cash and computer equipment worth $15,600 in the company.
2 The company rented furnished office space by paying $2,500 cash for the first month's (April) rent.
3 The company purchased $1,200 of office supplies for cash. The company's policy is to initially record all prepaid and unearned items in balance sheet accounts.
4 The company paid $2,160 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. The company's policy is to initially record all prepaid and unearned items in balance sheet accounts.
5 The company paid $1,680 cash for two weeks' salaries earned by employees.
6 The company collected $22,000 cash for commissions earned.
7 The company paid $1,680 cash for two weeks' salaries earned by employees.
8 The company paid $800 cash for minor repairs to the company's computer.
9 The company paid $400 cash for this month's telephone bill.
10 Griffin withdrew $1,800 cash from the company for personal use.
11 Prepaid insurance of $120 has expired this month.
12 At month-end, $950 of supplies are still available. Record the required adjusting entry, if any.
13 This month's depreciation on the computer is $260. Record the required adjusting entry, if any.
14 Employees earned $672 of unpaid and unrecorded salaries as of month-end. Record the required adjusting entry, if any.
15 The company earned $1,800 of commissions that are not yet billed at month-end. Record the required adjusting entry, if any.
16 Record the entry to close the revenue account(s).
17 Record the entry to close the expense account(s).
18 Record the entry to close Income summary.
19 Record the entry to close the owner's withdrawals account.