April 1 Nozomi invested $44,000 cash and computer equipment worth $38,080 in the

Question

April 1 Nozomi invested $44,000 cash and computer equipment worth $38,080 in the company in exchange for common stock. 2 The company rented furnished office space by paying $1,580 cash for the first month's (April) rent. 3 The company purchased $1,300 of office supplies for cash. 10 The company paid $2,100 cash for the premium on a 12-month insurance policy. Coverage begins on April 11 14 The company paid $1,309 cash for two weeks salaries earned by employees 24 The company collected $22,580 cash on commissions from airlines on tickets obtained for customers. 28 The company paid $1,300 cash for two weeks salaries earned by employees 29 The company paid $450 cash for minor repairs to the company's computer 30 The company paid $1,050 cash for this month's telephone bill. 30 The company paid $1,808 cash in dividends. The company's chart of accounts follows 101 Cash 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 186 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 Use the following information: a. Two-thirds (or $117) of one month's insurance coverage has expired. b. At the end of the month, $500 of office supplies are still available. c. This month's depreciation on the computer equipment is $300 d. Employees earned $350 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: 1. & 2. Prepare journal entries to record the transactions for April and post them to the ledger accounts in Requirement 6b. The company records prepaid and unearned items in balance sheet accounts 3. Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30 4. Journalize and post the adjusting entries for the month and prepare the adjusted trial balance. 50. Prepare the income statement for the month of April 30, 2017 5b. Prepare the statement of retained earnings for the month of April 30, 2017 5c. Prepare the balance sheet at April 30, 2017 6a. Prepare journal entries to close the temporary accounts and then post to Requirement 6b 6b. Post the journal entries to the ledger 7. Prepare a post-closing trial balance.

Explanation / Answer

As per policy, four parts of a question is allowed to answer at a time, so answering four parts. You can post again for rest of the requirements.

1) Journal entries: Date Account Titles Debit $ Credit $ 1-Apr Cash 44000 Computer Equipment 30000 Common Stock 74000 (being cash and equipment invested in) 2-Apr Rent expense 1500 Cash 1500 (paid rent for april) 3-Apr Office Supplies 1300 Cash 1300 (purchased supplies) 10-Apr Prepaid insurance 2100 Cash 2100 (paid for 12 months insurance) 14-Apr Salary exp 1300 Cash 1300 (salaries paid) 24-Apr Cash 22500 Commissions Earned 22500 (cash collected on services of tickets) 28-Apr Salary exp 1300 Cash 1300 (salaries paid) 29-Apr Repair expense 450 Cash 450 (repairs of computer paid) 30-Apr Telephone exp 1050 Cash 1050 (telephone exp paid) 30-Apr Dividends 1800 Cash 1800 (dividends paid)

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