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Business & Finance Assignment | Custom Assignment Help

 

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On April 1, 2009, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company’s first month.Prepare an unadjusted trial balance as of April 30. 4. Use the following information to journalize and post adjusting entries for the month.

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a. Two-thirds of one month’s insurance coverage has expired. b. At the end of the month, $700 of office supplies are still available. c. This month’s depreciation on the computer equipment is $500. d. Employees earned $720 of unpaid and unrecorded salaries as of month-end. e. The company earned $3,050 of commissions that are not yet billed at month-end. 5. Prepare the income statement and the statement of retained earnings for the month of April and the balance sheet as of April 30, 2009. 6. Prepare journal entries to close the temporary accounts and post these entries to the ledger. 7. Prepare a post-closing trial balance. April 1 Nozomi invested $32,000 cash and computer equipment worth $26,000 in the company in exchange for its common stock. 2 The company rented furnished office space by paying $1,300 cash for the first month’s (April)rent.

3 The company purchased $2,500 of office supplies for cash. 10 The company paid $2,502 cash for the premium on a 12-month insurance policy. Coverage be- gins on April 11. 14 The company paid $2,300 cash for two weeks’salaries earned by employees. 24 The company collected $16,000 cash on commissions from airlines on tickets obtained for customers. 28 The company paid $2,400 cash for two weeks’salaries earned by employees. 29 The company paid $750 cash for minor repairs to the company’s computer. 30 The company paid $550 cash for this month’s telephone bill. 30 The company paid $1,200 cash for dividends. The company’s chart of accounts follows: 101 Cash 405 Commissions Earned 106 Accounts Receivable 612 Depreciation Expense—Computer Equip. 124 Office Supplies 622 Salaries Expense 128 Prepaid Insurance 637 Insurance Expense 167 Computer Equipment 640 Rent Expense 168 Accumulated Depreciation—Computer Equip. 650 Office Supplies Expense 209 Salaries Payable 684 Repairs Expense 307 Common Stock 688 Telephone Expense 318 Retained Earnings 901 Income Summary 319 DividendsGet business and finance assignment homework help today

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