80.2K

Verified Solution

Link Copied!

Show me the steps to solve On April $1,$ Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first

month.

April $1$ Nozomi invested $$40,000$ cash and computer equipment worth $$35,000$ in the company in exchange for common stock.

April $2$ The company rented furnished office space by paying $$1,600$ cash for the first month's $($April$)$ rent.

April $3$ The company purchased $$1,700$ of office supplies for cash.

April $10$ The company paid $$2,500$ cash for the premium on a $12-$month insurance policy. Coverage begins on April $11.$

April $14$ The company paid $$1,500$ cash for two weeks' salaries earned by employees.

April $24$ The company collected $$14,000$ cash for commissions revenue.

April $28$ The company paid $$1,500$ cash for two weeks' salaries earned by employees.

April $29$ The company paid $$450$ cash for minor repairs to the company's computer.

April $30$ The company paid $$900$ cash for this month's telephone bill.

April $30$ The company paid $$2,100$ cash in dividends.

The company's chart of accounts follows:

Use the following information:

a$.$ Prepaid insurance of $$139$ has expired this month.

b$.$ At the end of the month, $$400$ of office supplies are still available.

c$.$ This month's depreciation on the computer equipment is $$500.$

d$.$ Employees earned $$370$ of unpaid and unrecorded salaries as of month$-$end.

e$.$ The company earned $$2,300$ of commissions that are not yet billed at month$-$end.

Required:

& $2.$ Prepare journal entries to record the transactions for April and post them to the ledger accounts in Requirement $6$ b $.$ The

company records prepaid and unearned items in balance sheet accounts.

Using account balances from Requirement $6$b$,$ prepare an unadjusted trial balance as of April $30.$

Journalize the adjusting entries for the month and prepare the adjusted trial balance.

$5$a$.$ Prepare the income statement for the month of April $30.$

$5$b$.$ Prepare the statement of retained earnings for the month of April $30.$

$5$c$.$ Prepare the balance sheet at April $30.$

$6$a$.$ Prepare journal entries to close the temporary accounts and then post to Requirement $6$ b $.$

$6$b$.$ Post the journal entries to the ledger.

Prepare a post$-$closing trial balance.

Answer & Explanation Solved by verified expert

See Answer