I am having issues income summary at the very bottom and the post closing trial
ID: 2393407 • Letter: I
Question
I am having issues income summary at the very bottom and the post closing trial balance, I do not need help with any of the other sections
On April 1, 2017, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company’s first month.
The company's chart of accounts follows:
Use the following information:
Two-thirds (or $111) of one month’s insurance coverage has expired.
At the end of the month, $600 of office supplies are still available.
This month’s depreciation on the computer equipment is $300.
Employees earned $520 of unpaid and unrecorded salaries as of month-end.
The company earned $1,750 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 the adjusting entries for the month and prepare the adjusted trial balance.
5a. Prepare the income statement for the month of April 30, 2017.
5b. Prepare the statement of owner's equity 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.
Post the journal entries to the ledger. If there is more than one transaction on a specific date, make sure to select the specific (abbreviated) date choice for that transaction in the date field.
April 1 Nozomi invested $37,000 cash and computer equipment worth $20,000 in the company. 2 The company rented furnished office space by paying $2,500 cash for the first month’s (April) rent. 3 The company purchased $1,300 of office supplies for cash. 10 The company paid $2,000 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. 14 The company paid $1,300 cash for two weeks' salaries earned by employees. 24 The company collected $23,500 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 $500 cash for minor repairs to the company's computer. 30 The company paid $1,200 cash for this month's telephone bill. 30 Nozomi withdrew $1,500 cash from the company for personal use. Req 4 Adj Entries Req 4 Adj Trial BaReq 5A Req 1 and 2 Req 3 Req 5B Req 5C Req 6AReq 6B GL Req 7 Post the journal entries to the ledger. If there is more than one transaction on a specific date, make sure to select the specific (abbreviatec transaction in the date field General Ledger accounts Cash Accounts Receivable Date Debit Credit Debit Credit April 1 April 2 April 3 April 10 April 14 April 24 April 28 April 29 April 30 Tel. April 30 Div 37,000 37,000 34,500 33,200 31,200 29,900 53,400 52,100 51,600 50,400 48,900 April 30 Adj. 1,750 1,750 2,500 1,300 2,000 1,300 23,500 1,300 1,200 1,500 Office Supplies Prepaid Insurance Credit Credit April 3 April 30 Adj. April 10 April 30 Adj. 1,300 1,300 2,000 2,000 700 1,889 Computer Equipment r equipment Debit Credit Date Debit Credit April 1 20,000 20,000 April 30 Adj. 300 Salaries Payable Debit J. Nozomi, Capital Credit Date Credit April 30 Adj. April 30 Close April 30 Close 16,819 16,819 1,500 15,319Explanation / Answer
Adventure Travel General Journal Date Journal Amount (DR) Amount (CR) 01-Apr Cash $ 37,000.00 Computer Equipment $ 20,000.00 To Common Stock $ 57,000.00 (Being Nozomi invested cash and Computer in a company) 02-Apr Rent $ 2,500.00 To Cash $ 2,500.00 (Being amount of Rent paid for furnished office space) 03-Apr Office Supplies $ 1,300.00 To Cash $ 1,300.00 (Being amount of Office supplies purchased for cash) 10-Apr Prepaid Insurance $ 2,000.00 To Cash $ 2,000.00 (Being amount of Insurance paid for 12 months) 14-Apr Salaries $ 1,300.00 To Cash $ 1,300.00 (Being amount paid for 2 weeks salary to staff) 24-Apr Cash $ 23,500.00 To Commission Earned $ 23,500.00 (Being amount of commission received from Airlines) 28-Apr Salaries $ 1,300.00 To Cash $ 1,300.00 (Being amount paid for 2 weeks salary to staff) 29-Apr Repairs Expenses $ 500.00 To cash $ 500.00 (Being amount paid for computer repairs) 30-Apr Telephone Expenses $ 1,200.00 To cash $ 1,200.00 (Being amount paid for Telephone Expenses) 30-Apr J.Nozomi's Withdrawals $ 1,500.00 To Cash $ 1,500.00 (Being amount withdrawal for personal use) Adventure Travels Unadjusted Trial Balance April 30th,2017 Code Account Title Amt(Dr) Amt(Cr) 101 Cash($37000+$23500-$2500-$1300-$2000-$1300-$1300-$500-$1200-$1500) $ 48,900.00 106 Accounts Receivable 124 Office Supplies $ 1,300.00 128 Prepaid Insurance $ 2,000.00 167 Computer Equipment $ 20,000.00 168 Accumulated Depreciation-Computer Equipment 209 Salaries Payable 301 J.Nozomi's Capital $ 57,000.00 302 J. Nozomi's Withdrawl $ 1,500.00 405 Commission Earned $ 23,500.00 612 Depreciation expenses-Comuter Equipment 622 Salaries Expenses($1300+$1300) $ 2,600.00 637 Insurance Expenses 640 Rent Expenses $ 2,500.00 650 Office Supplies Expenses 684 Repair Expenses $ 500.00 688 Telephone Expenses $ 1,200.00 Total $ 80,500.00 $ 80,500.00 Adjusting Entries Date Particular Amount (Dr) Amount(Cr) 30-Apr Insurance Expenses $ 111.00 To Prepaid Insurance $ 111.00 (Being amount of Prepaid Insurance 30-Apr Office supplies Expenses($1300-$600) $ 700.00 To Office Supplies $ 700.00 (Being amount of Office supplies Expenses) 30-Apr Depreciation Expense-Computer Equipment $ 300.00 To Accumulated Depreciation-Computer Equipment $ 300.00 (Being amount of Depreciation Expense) 30-Apr Salaries Expenses $ 520.00 To Salaries Payable $ 520.00 (Being amount of Salaries Expenses) 30-Apr Accounts Receivable $ 1,750.00 To Commission Earned $ 1,750.00 (Being amount of Commission Earned) Adventure Travels Income Statement April 30th,2017 Revenue: Commission Earned($23500+$1750) $ 25,250.00 Expenses Salries Expenses($1300+$1300+$520) $ 3,120.00 Rent Expenses $ 2,500.00 Insurance Expenses $ 111.00 Supplies Expenses $ 700.00 Telphone Expenses $ 1,200.00 Repair Expenses $ 500.00 Depreciation -Expenses $ 300.00 Total Expenses $ 8,431.00 Net Income $ 16,819.00 Adventure Travels Statement of Owner's Equity April 30th,2017 J.Nozomi's Beginning Capital $ 57,000.00 Add: Net Income $ 16,819.00 Less: J.Nozomi's Withdrawl $ (1,500.00) J.Nozomi's Ending Capital $ 72,319.00 Adventure Travels Balance Sheet at 30th April 2017 Current Assets Cash $ 48,900.00 Accounts Receivable $ 1,750.00 Office supplies $ 600.00 Prepaid Insurance $ 1,889.00 Total Current Assets $ 53,139.00 Fixed Assets Computer Equipment $ 20,000.00 Less: Accumulated Depreciation $ (300.00) $ 19,700.00 Total Assets $ 72,839.00 Current Liabilities Salary Payable $ 520.00 $ 520.00 Owner's Equity $ 72,319.00 Total Liabilities & Owner's Equity $ 72,839.00 Cash A/c Balance Date Title Debit Credit Debit Credit 01-Apr $ 37,000.00 $ 37,000.00 02-Apr $ 2,500.00 $ 34,500.00 03-Apr $ 1,300.00 $ 33,200.00 10-Apr $ 2,000.00 $ 31,200.00 14-Apr $ 1,300.00 $ 29,900.00 24-Apr $ 23,500.00 $ 53,400.00 28-Apr $ 1,300.00 $ 52,100.00 29-Apr $ 500.00 $ 51,600.00 30-Apr $ 1,200.00 $ 50,400.00 30-Apr $ 1,500.00 $ 48,900.00 Common Stock Balance Date Title Debit Credit Debit Credit 01-Apr $ 37,000.00 $ 37,000.00 01-Apr $ 20,000.00 $ 57,000.00 Prepaid Insurance Date Title Debit Credit Debit Credit 10-Apr $ 2,000.00 $ 2,000.00 30-Apr $ 111.00 $ 1,889.00 Insurance Date Title Debit Credit Debit Credit 30-Apr $ 111.00 $ 111.00 Rent Expenses Date Title Debit Credit Debit Credit 02-Apr $ 2,500.00 $ 2,500.00 Office supplies Date Title Debit Credit Debit Credit 03-Apr $ 1,300.00 $ 1,300.00 30-Apr $ 700.00 $ 600.00 Office supplies Expenses Date Title Debit Credit Debit Credit 31-Dec $ 700.00 $ 700.00 Telephone Expenses Date Title Debit Credit Debit Credit 30-Apr $ 1,200.00 $ 1,200.00 Depreciation Date Title Debit Credit Debit Credit 30-Apr $ 300.00 $ 300.00 Accumulated Depreciation Date Title Debit Credit Debit Credit 30-Apr $ 300.00 $ - $ 300.00 $ - Computer Equipment Date Title Debit Credit Debit Credit 01-Apr $ 20,000.00 $ 20,000.00 J.Nozomi's Drawings Date Title Debit Credit Debit Credit 30-Apr $ 1,500.00 Adventure Travels Adjusted Trial Balance Code Account Title Amt(Dr) Amt(Cr) 101 Cash($37000+$23500-$2500-$1300-$2000-$1300-$1300-$500-$1200-$1500) $ 48,900.00 106 Accounts Receivable $ 1,750.00 124 Office Supplies $ 600.00 128 Prepaid Insurance $ 1,889.00 167 Computer Equipment $ 20,000.00 168 Accumulated Depreciation-Computer Equipment $ 300.00 209 Salaries Payable $ 520.00 301 J.Nozomi's Capital $ 57,000.00 302 J. Nozomi's Withdrawl $ 1,500.00 405 Commission Earned $ 25,250.00 612 Depreciation expenses-Comuter Equipment $ 300.00 622 Salaries Expenses($1300+$1300+520) $ 3,120.00 637 Insurance Expenses $ 111.00 640 Rent Expenses $ 2,500.00 650 Office Supplies Expenses $ 700.00 684 Repair Expenses $ 500.00 688 Telephone Expenses $ 1,200.00 Total $ 83,070.00 $ 83,070.00
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.