On April 1, 2017, Jiro Nozomi created a new travel agency, Adventure Travel. The

Question

On April 1, 2017, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month. April 1 Nozomi invested $30,000 cash and computer equipment worth $25,ee in the company. 2 The company rented furnished office space by paying $1,998 cash for the first month's (April) rent 3 The company purchased $1,880 of office supplies for cash. 10 The company paid $2,700 cash for the premium on a 12-month insurance policy. Coverage begins on April 11 14 The company paid $1,488 cash for two weeks' salaries earned by employees. 24 The company collected $9,580 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 $358 cash for minor repairs to the company's computer. 30 The company paid $1,400 cash for this month's telephone bill 30 Nozomi withdrew $1,980 cash from the company for personal use. ces The company's chart of accounts follows 181 Cash 485 Commissions Earned 186 Accounts Receivable 612 Depreciation Expense-Computer Equip. 124 Office Supplies 128 Prepaid Insurance 167 Computer Equipment 622 Salaries Expense 637 Insurance Expense 640 Rent Expense Accumulated Depreciation-Computer Equip 168 658 Office Supplies Expense 289 Salaries Payable 301 J. Nozomi, Capital 302 J. Nozomi, Withdravals 684 Repairs Expense 688 Telephone Expense 981 Income Summary Use the following information

Explanation / Answer

Part - 1

Part-1

Part-3 & 4

Part -4

Adjustment entries;

Date Account Debit Credit April 1 Cash 30000 April 1 Computer Equipment 25000 April 1 J. Nozomi, Capital 55000 April 2 Rent Expense 1900 April 2 Cash 1900 April 3 Office Supplies 1800 April 3 Cash 1800 April 10 Prepaid Insurance 2700 April 10 Cash 2700 (2700*20/365) 20 days 11-30 April-Insurance Exp. Balance Prepaid April 14 Salaries Expense 1400 April 14 Cash 1400 April 24 Cash 9500 April 24 Commissions Earned 9500 April 28 Salaries Expense 1400 April 28 Cash 1400 April 29 Repairs Expense 350 April 29 Cash 350 April 30 Telephone Expense 1400 April 30 Cash 1400 April 30 J. Nozomi, Withdrawals 1900 April 30 Cash 1900

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