In: Accounting
On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company’s first month.
April | 1 | Nozomi invested $42,000 cash and computer equipment worth $30,000 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 $1,100 of office supplies for cash. | |||
10 | The company paid $2,400 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. | |||
14 | The company paid $1,000 cash for two weeks' salaries earned by employees. | |||
24 | The company collected $8,500 cash for commissions earned. | |||
28 | The company paid $1,000 cash for two weeks' salaries earned by employees. | |||
29 | The company paid $350 cash for minor repairs to the company's computer. | |||
30 | The company paid $950 cash for this month's telephone bill. | |||
30 | Nozomi withdrew $1,600 cash from the company 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 | 901 | Income Summary |
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 owner's equity 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.
Complete this question by entering your answers in the tabs below.
Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30.
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ournalize the adjusting entries for the month, and then post to the ledger on Req 6B tab, using April 30 Adj. as the date. (Do not round intermediate calculations and round the final answers to nearest whole number.)
Journal entry worksheet
Note: Enter debits before credits.
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Using adjusted account balances from Requirement 6b, prepare an adjusted trial balance as of April 30.
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