please just dont give me the answer, also explain it... thanks! On April 1, 2015
ID: 2600803 • Letter: P
Question
please just dont give me the answer, also explain it... thanks!
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 $30,000 cash and computer equipment worth $20,000 in the company in exchange for common stock. 2 The company rented furnished office 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-month 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 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 405 Commissions Earned 612 Depreciation Expense-Computer Equip 622 Salaries Expense 637 Insurance Expense 640 Rent Expense 650 Office Supplies Expense 684 Repairs Expense 688 Telephone Expense 901 Income Summary Use the following information in Part 4: a. Two-thirds (or $133) of one month's insurance coverage has expired b. At the end of the month, $600 of office supplies are still available. c. This month's depreciation on the computer equipment is $500. d. Employees earned $420 of unpaid and unrecorded salaries as of month-end e. The company earned $1,750 of commissions that are not yet billed at month-endExplanation / Answer
DATE
DETAILS
AMOUNT $
DEBIT A/C
CREDIT A/C
EXPLANATION
2015
APR 1
INVESTED CASH AND COMPUTER
30000
20000
CASH
COMP/ EQUIPMENT
CAPITAL
CAPITAL
OWNER BROUGHT ASSETS INTO BUSINESS
2
PAID FOR RENT
1800
RENT
CASH
3
PAID FOR SUPPLIES
1000
SUPPLIES PREPAID
CASH
30
SUPPLIES USED FOR MONTH
400
SUPPLIES EXPENSE
SUPPLIES PREPAID
MEANS THERE’S STILL INVENTORY LEFT OF $600 WORTH, UNUSED
10
PAID FOR INSURANCE PREMIUM
2400
INSURANCE PREPAID
CASH
THIS IS FOR THE WHOLE YEAR: $2400/12= 200 PER MONTH. EFFECTIVE 2/3 X 200 = $133
30
INSURANCE FOR THE MONTH OF APRIL
133
INSURANCE
INSURANCE PREPAID
14
SALARIES FOR EMPLOYEES
1600
SALARIES
CASH
1ST TO 15TH APRIL
24
AIRLINES PAID COMMISSIONS FOR SELLING THEIR TICKETS
8000
CASH
SALES COMMISSIONS
28
SALARIES FOR EMPLOYEES
1600
SALARIES
CASH
15TH TO 30TH APRIL
29
REPAIRS TO COMPUTER
350
REPAIRS
CASH
30
TELEPHONE
750
TELEPHONE
CASH
30
DIVIDENDS
1500
DIVIDENDS
CASH
30
DEPRECIATION OF COMPUTER
500
DEPRECIATION OF
COMPUTER
ACC DEP OF COMP
THE AMOUNT WASTED FROM COMPUTER
30
SALARY NOT YET PAID FOR APRIL
420
SALARIES
SALARY PAYABLE
30
AIRLINES COMMISSIONS
1750
ACC REC AIRLINES
SALES COMMISSIONS
DUE BUT NOT PAID FOR APRIL
DATE
DETAILS
AMOUNT $
DEBIT A/C
CREDIT A/C
EXPLANATION
2015
APR 1
INVESTED CASH AND COMPUTER
30000
20000
CASH
COMP/ EQUIPMENT
CAPITAL
CAPITAL
OWNER BROUGHT ASSETS INTO BUSINESS
2
PAID FOR RENT
1800
RENT
CASH
3
PAID FOR SUPPLIES
1000
SUPPLIES PREPAID
CASH
30
SUPPLIES USED FOR MONTH
400
SUPPLIES EXPENSE
SUPPLIES PREPAID
MEANS THERE’S STILL INVENTORY LEFT OF $600 WORTH, UNUSED
10
PAID FOR INSURANCE PREMIUM
2400
INSURANCE PREPAID
CASH
THIS IS FOR THE WHOLE YEAR: $2400/12= 200 PER MONTH. EFFECTIVE 2/3 X 200 = $133
30
INSURANCE FOR THE MONTH OF APRIL
133
INSURANCE
INSURANCE PREPAID
14
SALARIES FOR EMPLOYEES
1600
SALARIES
CASH
1ST TO 15TH APRIL
24
AIRLINES PAID COMMISSIONS FOR SELLING THEIR TICKETS
8000
CASH
SALES COMMISSIONS
28
SALARIES FOR EMPLOYEES
1600
SALARIES
CASH
15TH TO 30TH APRIL
29
REPAIRS TO COMPUTER
350
REPAIRS
CASH
30
TELEPHONE
750
TELEPHONE
CASH
30
DIVIDENDS
1500
DIVIDENDS
CASH
30
DEPRECIATION OF COMPUTER
500
DEPRECIATION OF
COMPUTER
ACC DEP OF COMP
THE AMOUNT WASTED FROM COMPUTER
30
SALARY NOT YET PAID FOR APRIL
420
SALARIES
SALARY PAYABLE
30
AIRLINES COMMISSIONS
1750
ACC REC AIRLINES
SALES COMMISSIONS
DUE BUT NOT PAID FOR APRIL
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