On April 1, 2015. Jiro Nozomi created a new travel agency. Adventure Travel The

Question

On April 1, 2015. Jiro Nozomi created a new travel agency. Adventure Travel The following transactions occurred during the company's first month April 1 Nozomi invested $36,000 cash and computer equipment worth $25,000 in the company The company rented furnished office space by paying $2,500 cash for the first month's (April) rent The company purchased $1,100 of office supplies for cash to The company paid $2,200 cash for the premium on a 12 month insurance policy Coverage begins on April 11 The company paid $1,400 cash for two weeks salaries earned by employees 24 The company collected $11500 cash on commissions from airlines on tickets obtained for customers The company paid $1,400 cash for two weeks salaries earned by employees The company paid $250 cash for minor repairs to the company's computer The company paid $1,550 cash for this months telephone bill Nozomi withdrew $2,000 cash from the company for personal use. Use the following information: Two chirds for $1221 of one month's insurance coverage has expired. At the end of the month $400 of office supplies are still available. This months depreciation on the computer equipment is $500 Employees earned $360 of unpaid and unrecorded salaries as of month-end The company earned $2,500 of commissions that are not yet billed of month-end.

Explanation / Answer

ADVENTURE TRAVEL

ADJUSTED TRIAL BALANCE

APRIL 30, 2015

ACCOUNT TITLE DEBIT CREDIT

101. Cash 36000

106. Accounts receivable 2500

124. Office supplies 400

128. Prepaid insurance 733

167. Computer equipment 25000

168. Acc. depreciation 500

209. Salaries payable 360

301. J.Nozami,capital 36000

302. J.Nozomi,withdrawals 2000

305. Commissions earned 14000

312. Depreciation expense-computer 500

equipment

322. Salaries expense 2800

337. Insurance expense 1467

340. Rent expense 2500

350. Office supplies expense 700

384. Repairs expense 250

388. Telephone expense 1550

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