Applying the accounting cycle LO C1, C2, P2, P3 [The following information appli

ID: 2487693 • Letter: A

Question

Applying the accounting cycle LO C1, C2, P2, P3 [The following information applies to the questions displayed below.] On April 1, 2015. Jlro 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. 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 $2,200 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. 14 The company paid $1,400 cash for two weeks' salaries earned by employees. 24 The company collected $11,500 cash on commissions from airlines on tickets obtained for customers. 28 The company paid $1,400 cash for two weeks' salaries earned by employees. 29 The company paid $250 cash for minor repairs to the company's computer. 30 The company paid $1,550 cash for this month's telephone bill. 30 Nozomi withdrew $2,000 cash from the company for personal use. The company's chart of accounts follows: Use the following information: Two-thirds (or $122) of one month's insurance coverage has expired. At the end of the month, $400 of office supplies are still available. This month's 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 at month-end.

Explanation / Answer

Unadjusted trial balance

Debit

Credit

Cash

35,100

Computer Equipment

25,000

J .Nazomi capital

61,000

Prepaid rent

2,500

Office supplies

1,100

Prepaid insurance

2,200

Salary expense

2,800

Commission earned

11,500

Repair expense

250

Telephone expense

1,550

J. Nozomi Drawings

2,000

Total

72,500