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erinraven611Lv1
28 Sep 2019
April 1, 2013, Jiro Nozomicreated a new travel agency, Adventure Travel. The followingtransactions occurred during the companyâs first month.
April 1 Nozomi invested $37,000 cash andcomputer equipment worth $27,000 in the company in exchange forcommon stock. 2 The company rented furnished officespace by paying $2,500 cash for the first monthâs (April)rent. 3 The company purchased $1,700 ofoffice supplies for cash. 10 The company paid $2,250 cash for the premium on a 12-monthinsurance policy. Coverage begins on April 11.
14 The company paid $2,300 cash fortwo weeksâ salaries earned by employees. 24 The company collected $11,500 cash on commissions from airlineson tickets obtained for customers.
28 The company paid $2,300 cash fortwo weeksâ salaries earned by employees. 29 The company paid $500 cash forminor repairs to the companyâs computer. 30 The company paid $800 cash for thismonthâs telephone bill. 30 The company paid $2,200 cash fordividends.
The companyâs chart of accountsfollows:
101 Cash 405 Commissions Earned 106 Accounts Receivable 612 Depreciation ExpenseâComputerEquip. 124 Office Supplies 622 Salaries Expense 128 Prepaid Insurance 637 Insurance Expense 167 Computer Equipment 640 Rent Expense 168 AccumulatedDepreciationâComputer Equip. 650 Office Supplies Expense 209 Salaries Payable 684 Repairs Expense 307 Common Stock 688 Telephone Expense 318 Retained Earnings 901 Income Summary 319 Dividends
Use the followinginformation:
a. Two-thirds (or $125) of onemonthâs insurance coverage has expired. b. At the end of the month, $950 ofoffice supplies are still available. c. This monthâs depreciation on thecomputer equipment is $850. d. Employees earned $490 of unpaidand unrecorded salaries as of month-end. e. The company earned $2,450 ofcommissions that are not yet billed at month-end.
1. Prepare journal entries to close the temporary accounts andthen post to section 6.2.
2. Post the journal entries to the ledger.
April 1, 2013, Jiro Nozomicreated a new travel agency, Adventure Travel. The followingtransactions occurred during the companyâs first month. |
April | 1 | Nozomi invested $37,000 cash andcomputer equipment worth $27,000 in the company in exchange forcommon stock. | |
2 | The company rented furnished officespace by paying $2,500 cash for the first monthâs (April)rent. | ||
3 | The company purchased $1,700 ofoffice supplies for cash. | ||
10 | The company paid $2,250 cash for the premium on a 12-monthinsurance policy. Coverage begins on April 11. | ||
14 | The company paid $2,300 cash fortwo weeksâ salaries earned by employees. | ||
24 | The company collected $11,500 cash on commissions from airlineson tickets obtained for customers. | ||
28 | The company paid $2,300 cash fortwo weeksâ salaries earned by employees. | ||
29 | The company paid $500 cash forminor repairs to the companyâs computer. | ||
30 | The company paid $800 cash for thismonthâs telephone bill. | ||
30 | The company paid $2,200 cash fordividends. |
The companyâs chart of accountsfollows: |
101 | Cash | 405 | Commissions Earned |
106 | Accounts Receivable | 612 | Depreciation ExpenseâComputerEquip. |
124 | Office Supplies | 622 | Salaries Expense |
128 | Prepaid Insurance | 637 | Insurance Expense |
167 | Computer Equipment | 640 | Rent Expense |
168 | AccumulatedDepreciationâComputer Equip. | 650 | Office Supplies Expense |
209 | Salaries Payable | 684 | Repairs Expense |
307 | Common Stock | 688 | Telephone Expense |
318 | Retained Earnings | 901 | Income Summary |
319 | Dividends | ||
Use the followinginformation: |
a. | Two-thirds (or $125) of onemonthâs insurance coverage has expired. |
b. | At the end of the month, $950 ofoffice supplies are still available. |
c. | This monthâs depreciation on thecomputer equipment is $850. |
d. | Employees earned $490 of unpaidand unrecorded salaries as of month-end. |
e. | The company earned $2,450 ofcommissions that are not yet billed at month-end. |
1. Prepare journal entries to close the temporary accounts andthen post to section 6.2.
2. Post the journal entries to the ledger.
Jean KeelingLv2
28 Sep 2019