s Lab Project A Help Save & Exit Submit 92 On April 1, 2017, Jiro Nozomi create
ID: 2566001 • Letter: S
Question
s Lab Project A Help Save & Exit Submit 92 On April 1, 2017, Jiro Nozomi create first month. d a new travel agency, Adventure Travel. The following transactions occurred during the c April 1 Nozomi invested $30,000 cash and computer equipment worth $20,000 in the company in exchange for common stoek. 2 The company rented furnished offic e space by paying $1,800 cash for the first month's (April) rent. 3 The company purchased $1,000 of office supplies for cash. 10 The company paid $2,400 cash for the premium on a 12-nonth insurance policy. Coverage begins on April 11. 14 The company paid $1,600 cash for two weeks' salaries earned by employees. 24 The company collected $8,000 cash on commissions from airlines on tickets obtained for customers. 28 The company paid $1,600 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 $750 cash for this month's telephone bill. 30 The company paid $1,500 cash in dividends. The company's chart of accounts follows: 405 Commissions Earned 101 Cash 106 Accounts Receivable 124 office Supplies 128 Prepaid Insurance 167 Computer Equipment 168 Accumulated Depreciation-Computer Equip. 209 Salaries Payable 307 Common Stock 318 Retained Earnings 319 Dividends 612 Depreciation Expense-Computer Equip. 622 Salaries Expense 640 Rent Expense 650 office Supplies Expense 684 Repairs Expense 688 Telephone Expense 901 Income Summary Use the following information: NextExplanation / Answer
Answer 1 & 4 & 6.
Journal Entry
Date Particulars Dr. Amt. Cr. Amt.
1-Apr Cash Dr. 30,000
Computer Dr. 20,000
To Common Stock 50,000
2-Apr Rent Expenses Dr. 1,800
To Cash 1,800
3-Apr Office Suplies Dr. 1,000
To Cash 1,000
10-Apr Prepaid Insurance Dr. 2,400
To Cash 2,400
14-Apr Salaries Expenses Dr. 1,600
To Cash 1,600
24-Apr Cash Dr. 8,000
To Commission Earned 8,000
28-Apr Salaries Expenses Dr. 1,600
To Cash 1,600
29-Apr Repairs Expenses Dr. 350
To Cash 350
30-Apr Telephone Expenses Dr. 750
To Cash 750
30-Apr Dividends Dr. 1,500
To Cash 1,500
Adjusting Entry
a. Insurance Expenses Dr. 133
To Prepaid Insurance 133
b. Office Supplies Expenses Dr. 400
To Office Supplies 400
c. Depreciation Expenses Dr. 500
To Accumulated Dep. - Computer 500
d. Salaries Expenses Dr. 420
To Salary Payable 420
e. Accounts Receivable Dr. 1,750
To Commission Earned 1,750
Closing Journal Entries
a. Income Summary Dr. 7,553
To Dep. Expenses - Computer 500
To Salaries Expenses 3,620
To Insurance Expense 133
To Rent Expense 1,800
To Office Supplies Expense 400
To Repairs Expense 350
To Telephone Expense 750
b. Commision Earned Dr. 9,750
To Income Summary 9,750
c. Income Summary Dr. 2,197
To Retained Earnings 2,197
d. Retained Earnings Dr. 1,500
To Dividends 1,500
Answer 2.
Cash Accounts Receivable Office Supplies
1-Apr 30,000 1,800 2-Apr e. 1,750 3-Apr 1,000 400 b.
24-Apr 8,000 1,000 3-Apr
2,400 10-Apr
1,600 14-Apr
1,600 28-Apr
350 29-Apr
750 30-Apr
1,500 30-Apr
End. Bal 27,000 End. Bal 1,750 End. Bal 600
Prepaid Insurance Computer Accumulated Dep - Computer
10-Apr 2,400 133 a. 1-Apr 20,000 500 c.
End. Bal 2,267 End. Bal 20,000 End. Bal 500
Salaries Payable Common Stock Dividends
420 d. 50,000 1-Apr 30-Apr 1,500
End. Bal 420 End. Bal 50,000 End. Bal 1,500
Commision Earned Dep. Expenses - Computer Salaries Expenses
8,000 24-Apr c. 500 14-Apr 1,600
1,750 e. 28-Apr 1,600
d. 420
End. Bal 9,750 End. Bal 500 End. Bal 3,620
Insurance Expense Rent Expense Office Supplies Expense
a. 133 2-Apr 1,800 b. 400
End. Bal 133 End. Bal 1,800 End. Bal 400
Repairs Expense Telephone Expense
29-Apr 350 30-Apr 750
End. Bal 350 End. Bal 750
Answer 3.
Unadjusted Trial Balance
April 30, 2017
Particulars Dr. Amt. Cr. Amt.
Cash 27,000
Accounts Receivable -
Office Supplies 1,000
Prepaid Insurance 2,400
Computer 20,000
Accumulated Dep - Computer -
Salaries Payable -
Common Stock 50,000
Dividends 1,500
Commision Earned 8,000
Dep. Expenses - Computer -
Salaries Expenses 3,200
Insurance Expense -
Rent Expense 1,800
Office Supplies Expense -
Repairs Expense 350
Telephone Expense 750
Total 58,000 58,000
-
Answer 4.
Adjusted Trial Balance
April 30, 2017
Particulars Dr. Amt. Cr. Amt.
Cash 27,000
Accounts Receivable 1,750
Office Supplies 600
Prepaid Insurance 2,267
Computer 20,000
Accumulated Dep - Computer 500
Salaries Payable 420
Common Stock 50,000
Dividends 1,500
Commision Earned 9,750
Dep. Expenses - Computer 500
Salaries Expenses 3,620
Insurance Expense 133
Rent Expense 1,800
Office Supplies Expense 400
Repairs Expense 350
Telephone Expense 750
Total 60,670 60,670
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Answer 5.
Income Statement
For The Month Ended April 30, 2017
Revenue
Commision Earned 9,750
Operating Expenses
Selling & Admn. Expenes
Dep. Expenses - Computer 500
Salaries Expenses 3620
Insurance Expense 133
Rent Expense 1800
Office Supplies Expense 400
Repairs Expense 350
Telephone Expense 750 7,553
Net Operating Income 2,197
Retained Earning Statement
As on April 30, 2017
Beginning Balance -
Net Operating Income 2,197
Sub-total 2,197
Less: Dividends 1,500
Ending Balance 697
Answer e.
Balance Sheet
As on April 30, 2017
Assets
Current Assets
Cash 27000
Accounts Receivable 1750
Office Supplies 600
Prepaid Insurance 2267 31,617
Property, Plant & Equipment
Computer 20000
Accumulated Depreciation (500) 19,500
Total Assets 51,117
Liabilities & Stockholders' Equity
Liabilities
Current Liabilities
Salaries Payable - 420
Long Term Liabilities -
Total Liabilities 420
Stockholders' Equity
Common Stock 50,000
Retained Earnings 697
Total Stockholders' Equity 50,697
Total Laibilities & Stockholders' Equity 51,117
Answer 4.
Post Closing Trial Balance
April 30, 2017
Particulars Dr. Amt. Cr. Amt.
Cash 27,000
Accounts Receivable 1,750
Office Supplies 600
Prepaid Insurance 2,267
Computer 20000
Accumulated Depreciation 500
Salaries Payable 420
Common Stock 50,000
Retained Earnings 697
Total 51,617 51,617
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