Mail - stephanie.mahaffey@cioxhealth.com cember 1, 2015 John Trap created a new

Question

Mail - stephanie.mahaffey@cioxhealth.com cember 1, 2015 John Trap created a new travel agency, Trap Adventures, Inc. providing exclusi The following transactions occurred during December 201s TE: There are no beginning balances -this is a new company,) ec John Trap invested $60,000 cash in the company for common stock. Purchase office equipment for $17,500 cash. The company rented furnished office space by paying $18,000 cash for the first six months May 2016) rent. 3 The company purchased $1,500 of office supplies on account. 10 The company paid $3,600 cash for the premium on a 12-month insurance policy. 14 The company paid $10,750 cash for two weeks' salaries earned by employees. 24 The company collected $54,000 cash on commissions from airlines on tickets obtained fo 28 The company paid $12,125 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 $450 cash for this month's telephone bill. 0 Dividends of $3,000 cash were paid. Adjustment Data: . One month's insurance coverage has expired. The company occupied the office space for the month of December. At the end of the month, $600 of office supplies are still available. This month's depreciation on the computer equipment is $325. Employees earned $525 of unpaid and unrecorded salaries as of month-end. . inal Project Requirements g the spreadsheet found here and information above, complete the following: 1. Journal entries to record the transactions that occurred during the month of Decem 2. Prepare an unadjusted trial balance.

Explanation / Answer

Journal entries

Date (2015)

Account Title

Debit

Credit

1-Dec

Cash

$    60,000.00

Comon Stock

$          60,000.00

(common stock issued)

2-Dec

Office Equipment

$    17,500.00

Cash

$          17,500.00

(office Equipment purchased)

2-Dec

Advance Rent

$    18,000.00

Cash

$          18,000.00

(Office rent paid in advance)

3-Dec

Office Supplies

$      1,500.00

Accounts Payable

$            1,500.00

(supplies purchased on credit)

10-Dec

Prepaid Insurance

$      3,600.00

Cash

$            3,600.00

(advance Insurance premium paid)

14-Dec

Salaries expenses

$    10,750.00

Cash

$          10,750.00

(salaries paid)

24-Dec

Cash

$    54,000.00

Commission Income

$          54,000.00

(commission received)

28-Dec

Salaries expenses

$    12,125.00

Cash

$          12,125.00

(salaries paid)

29-Dec

Repairs

$          350.00

cash

$                350.00

(expenses paid)

30-Dec

Telephone expenses

$          450.00

cash

$                450.00

(telephone bill paid)

30-Dec

Dividends

$      3,000.00

cash

$            3,000.00

(dividends paid in cash)

30-Dec

Insurance expenses

$          300.00

Prepaid Insurance

$                300.00

(one month insurance expired)

30-Dec

Rent

$      3,000.00

Advance rent

$            3,000.00

(one months rent expenses)

30-Dec

Supplies Expenses

$          900.00

Office Supplies

$                900.00

(Office supplies consumed)

30-Dec

Depreciation

$          325.00

Accumulated depreciation

$                325.00

(Depreciation on computer recorded)

30-Dec

Salaries Expenses

$          525.00

salaries payable

$                525.00

(salaries Payable)

$ 184,575.00

$        184,575.00

Unadjusted Trial Balance

Trap Adventures Inc

Dec-15

Account title

Debit

Credit

Cash

$      48,225.00

Prepaid Insurance

$        3,300.00

Accounts Payable

$       1,500.00

Commission Income

$     54,000.00

Advance Rent

$      15,000.00

Suppplies

$            600.00

Salaries Expenses

$      23,400.00

Rent

$        3,000.00

Office Equipment

$      17,500.00

Common Strock

$     60,000.00

Dividends

$        3,000.00

Repairs

$            350.00

Telephone expenses

$            450.00

Supplies Expenses

$            900.00

Insurance

$            300.00

Salaries Payable

$           525.00

Depreciation

$            325.00

Accumulated Depreciation

$           325.00

Total

$    116,350.00

$   116,350.00

Journal entries

Date (2015)

Account Title

Debit

Credit

1-Dec

Cash

$    60,000.00

Comon Stock

$          60,000.00

(common stock issued)

2-Dec

Office Equipment

$    17,500.00

Cash

$          17,500.00

(office Equipment purchased)

2-Dec

Advance Rent

$    18,000.00

Cash

$          18,000.00

(Office rent paid in advance)

3-Dec

Office Supplies

$      1,500.00

Accounts Payable

$            1,500.00

(supplies purchased on credit)

10-Dec

Prepaid Insurance

$      3,600.00

Cash

$            3,600.00

(advance Insurance premium paid)

14-Dec

Salaries expenses

$    10,750.00

Cash

$          10,750.00

(salaries paid)

24-Dec

Cash

$    54,000.00

Commission Income

$          54,000.00

(commission received)

28-Dec

Salaries expenses

$    12,125.00

Cash

$          12,125.00

(salaries paid)

29-Dec

Repairs

$          350.00

cash

$                350.00

(expenses paid)

30-Dec

Telephone expenses

$          450.00

cash

$                450.00

(telephone bill paid)

30-Dec

Dividends

$      3,000.00

cash

$            3,000.00

(dividends paid in cash)

30-Dec

Insurance expenses

$          300.00

Prepaid Insurance

$                300.00

(one month insurance expired)

30-Dec

Rent

$      3,000.00

Advance rent

$            3,000.00

(one months rent expenses)

30-Dec

Supplies Expenses

$          900.00

Office Supplies

$                900.00

(Office supplies consumed)

30-Dec

Depreciation

$          325.00

Accumulated depreciation

$                325.00

(Depreciation on computer recorded)

30-Dec

Salaries Expenses

$          525.00

salaries payable

$                525.00

(salaries Payable)

$ 184,575.00

$        184,575.00

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