Project: On March 1, 2015 you created a new travel agency, Your Name ___________

Question

Project: On March 1, 2015 you created a new travel agency, Your Name ___________Travel Agency. The following transactions occurred during the company’s first month. 1. March 1: You invested $20,000 cash and computer equipment worth $40,000 in the company. 2. March 2: The company rented furnished Office space by paying $1,700 cash for the first month’s (March) rent. 3. March 3: The company purchased $1,100 of Supplies for cash. 4. March 10: The company paid $3,600 cash for the premium on a 12-month insurance policy. Coverage begins on March 11. 5. March 14: The company paid $1,800 cash for two weeks, salaries earned by employees. 6. March 24: The company collected $7,900 cash on commissions from airlines on tickets obtained from customers. 7. March 28: The company paid $1,800 cash for two weeks’ salaries earned by employees. 8. March 29: The company paid $250. cash for minor repairs to the company’s computer. 9. March 30: The company paid $650. cash for this month’s telephone bill. 10. March 31: You withdrew $1,500 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 – Equip. 124 Supplies 622 Salaries Expense 128 Prepaid Insurance 637 Insurance Expense 167 Computer Equipment 640 Rent & Maintenance Expense 168 Accumulated Depreciation 650 Office Supplies Expense 209 Salaries Payable 684 Repairs Expense 301 Your name, Capital 688 Telephone Expense 302 Your name, Withdrawals 700 Income Summary Requirements: ( I have designed this project so that you can use either your learned accounting skills or using Quickbooks software. I recommend if possible use both approaches). Task 2: Prepare journal entries to record March transactions: > Print journal entries per task #2 Task 3: Prepare or print Trial Balance at end of March: Task 4: Use the following information to journalize the adjusting Entries: (a) Two-thirds of one month’s insurance coverage has expired. (b) At the end of the month, $700 of office supplies are still available. (c) This month’s depreciation on the computer equipment is $600. (d) Employees earned $320. of unpaid and unrecorded salaries as of month-end. (e) The company earned $1,650 of commissions that are not yet billed at month-end (use the Accounts Receivable Account). Task 5: Prepare or print out the adjusting entries: Task 6: Prepare or print the Adjusted Trial Balance at end of March. Task 7: Prepare or print Income Statement (Profit & Loss) for March. Task 8. Prepare or print the Owners’ Equity Statement for March. Task 9: Prepare or print the Balance Sheet at end of March Task 10: Prepare the closing entries for March. Task 11. Prepare or print the Post Closing Trial Balance at end of March. Task 12: Close the Accounting period for March.

Explanation / Answer

Date general journal    debit credit

April 1 cash 37000

camputer equipment      

J. STAFFORD, CAPITAL               7200

2.RENT EXPENSE 2000

CASH 2000

3.OFFICE SUPLIES 2000

CASH 2000

10. PREPAID INSURANCE2300

CASH 2300

14.SALARIES INSURANCE1700

CASH 1700

24.CASH 9000

COMMISION EARNED 9000

28.SALARIES EXPENSE1700

CASH 1700

29.RAPAIRS EXPENSE 350

CASH 350

30.TELEPHONE EXPENSE 900

CASH 900

30J.STAFFORD,WITHDRAWALS2500

CASH 2500

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