Problem 4-13A Performing the steps in the accounting cycle LO2,3.45.6 CHECK FIGU
ID: 2403804 • Letter: P
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Problem 4-13A Performing the steps in the accounting cycle LO2,3.45.6 CHECK FIGURES: 4. Loss = $1,070; Total assets = $102,100; 6. Post-closing trial balance $104,150 On June 1, 2017, Sam Near created a new travel agency called Tours-For-Less. These activities occurred during the company's first month: 1 Near created the new company by investing $40.000 cash. $5.000 of furniture, and computer equipment worth $60,000 June 2 The company rented furnished office space by paying $3.200 rent for the first month. 3 The company purchased $2.400 of office supplies for cash. 10 The company paid $7.200 for the premium on a one year insurance policy. 14 The owner's assistant was paid $3,600 for two weeks' salary. 24 The company collected $13.600 of commissions from airlines on tickets obtained for customers. 28 The assistant was paid another $3.600 for two weeks' salary. 2 The company paid the month's $3,500 phone bill 30 The company repaired its computer for $700 on account. 30 The owner withdrew $2,850 cash from the business for personal use.Explanation / Answer
Sam Near's General Journal Particular Amount (Dr) Amount (Cr) Cash $ 40,000.00 Furniture $ 5,000.00 Computer Equipment $ 60,000.00 To Sam Near's Capital $ 1,05,000.00 (Being amount of Cash ,Furniture and computer equipment investing by Sam Near) Rent $ 3,200.00 To Cash $ 3,200.00 (Being amount of Rent paid for the month) Office Supplies $ 2,400.00 To Cash $ 2,400.00 (Being amount paid for Office supplies) Prepaid Insurance $ 7,200.00 To Cash $ 7,200.00 (Being amount of Prepaid Insurance) Salary $ 3,600.00 To Cash $ 3,600.00 (Being Amount of Salary paid to assistant) Cash $ 13,600.00 To Commision Revenue $ 13,600.00 (Being amount of salary paid to employee) Salary $ 3,600.00 To Cash $ 3,600.00 (Being Amount of Salary paid to assistant) Telephone Expenses $ 3,500.00 To Cash $ 3,500.00 (Being amount of Telephone Expenses) Repairs Expenses $ 700.00 To Cash $ 700.00 (Being amount paid for computer repairs) Sam Near, Withdraw $ 2,850.00 To Cash $ 2,850.00 (Being amount withdraw by Sam Near for personal use) Insurance $ 400.00 To Prepaid Insurance($7200/12)*2/3 $ 400.00 (Being 2/3 of one month insuance coverage was consumed) Office Supplies Expenses $ 800.00 To Office Supplies($2400-$1600) $ 800.00 (Being amount of Office Supplies Expenses) Depreciation-Computer Equipment $ 1,650.00 To Accumulated Depreciation-Computer Equipment $ 1,650.00 (Being amount of Depreciation) Depreciation-Furniture $ 400.00 To Accumulated Depreciation-Furniture $ 400.00 (Being amount of Depreciation) Salary $ 320.00 To Salary Payable $ 320.00 (Being amount of unpaid and unrecorded salary) Accounts Receivable $ 3,500.00 To Commission Revenue $ 3,500.00 (Being amount of commission earned but not billed) T-Accounts Sam Near's Capital Account Particular Amount Particular Amount To Bal C/d $ 1,05,000.00 By Cash $ 40,000.00 By Computer Equipment $ 60,000.00 By Furniture $ 5,000.00 Total $ 1,05,000.00 Total $ 1,05,000.00 Computer Equipment Particular Amount Particular Amount To Sam Near's Capital $ 60,000.00 By Bal C/d $ 60,000.00 Total $ 60,000.00 Total $ 60,000.00 Furniture Particular Amount Particular Amount To Sam Near's Capital $ 5,000.00 By Bal C/d $ 5,000.00 Total $ 5,000.00 Total $ 5,000.00 Office Supplies Particular Amount Particular Amount To Cash $ 2,400.00 By Supply Expenses $ 800.00 By Bal C/d $ 1,600.00 Total $ 2,400.00 Total $ 2,400.00 Prepaid Insurance Particular Amount Particular Amount To Cash $ 7,200.00 By Insurance $ 400.00 By Bal C/d $ 6,800.00 Total $ 7,200.00 Total $ 7,200.00 Commission Revenue Particular Amount Particular Amount To Bal C/d $ 17,100.00 By Cash $ 13,600.00 By Accounts Receivable $ 3,500.00 Total $ 17,100.00 Total $ 17,100.00 Rent Particular Amount Particular Amount To Cash $ 3,200.00 By Bal C/d $ 3,200.00 Total $ 3,200.00 Total $ 3,200.00 Salary A/c Particular Amount Particular Amount To Cash $ 3,600.00 By Bal c/d $ 7,520.00 To Cash $ 3,600.00 To Salary Payable $ 320.00 Total $ 7,520.00 Total $ 7,520.00 Accounts Receivable Particular Amount Particular Amount To Commission Revenue $ 3,500.00 By Bal c/d $ 3,500.00 Total $ 3,500.00 Total $ 3,500.00 Salary Payable Particular Amount Particular Amount To Bal C/d $ 320.00 By Salary $ 320.00 Total $ 320.00 Total $ 320.00 Insurance Particular Amount Particular Amount To Prepaid Insurance $ 400.00 By Bal C/d $ 400.00 Total $ 400.00 Total $ 400.00 Sam Near's Withdraw Particular Amount Particular Amount To Cash $ 2,850.00 By Bal C/d $ 2,850.00 Total $ 2,850.00 Total $ 2,850.00 Depreciation-Computer Equipment Particular Amount Particular Amount To Accumulated Depreciation-Computer Equipment $ 1,650.00 By Bal C/d $ 1,650.00 Total $ 1,650.00 Total $ 1,650.00 Depreciation-Furniture Particular Amount Particular Amount To Accumulated Depreciation-Computer Equipment $ 400.00 By Bal C/d $ 400.00 Total $ 400.00 Total $ 400.00 Accumuated Depreciation-Computer Equipment Particular Amount Particular Amount To Bal C/d $ 1,650.00 By Depreciation-Computer Equipment $ 1,650.00 Total $ 1,650.00 Total $ 1,650.00 Accumuated Depreciation-Furniture Particular Amount Particular Amount To Bal C/d $ 400.00 By Depreciation-Furniture $ 400.00 Total $ 400.00 Total $ 400.00 Repairs Particular Amount Particular Amount To Cash $ 700.00 By Bal C/d $ 700.00 Total $ 700.00 Total $ 700.00 Telephone Expenses Particular Amount Particular Amount To Cash $ 3,500.00 By Bal C/d $ 3,500.00 Total $ 3,500.00 Total $ 3,500.00 Cash A/c Particular Amount Particular Amount To Sam's Near's Capital $ 40,000.00 By Rent $ 3,200.00 To Commission Revenue $ 13,600.00 By Office Supplies $ 2,400.00 By Prepaid Insurance $ 7,200.00 By Salary $ 3,600.00 By Salary $ 3,600.00 By Telephone Expenses $ 3,500.00 By Repairs Expenses $ 700.00 By Sam's Near Withdraw $ 2,850.00 By Bal c/d $ 42,950.00 Total $ 53,600.00 Total $ 53,600.00 Trial Balance Cash $ 42,950.00 Sam Near's Capital $ 1,05,000.00 Computer Equipment $ 60,000.00 Furniture $ 5,000.00 Prepaid Insurance $ 6,800.00 Office Supplies $ 1,600.00 Accounts Receivable $ 3,500.00 Rent $ 3,200.00 Repairs Expenses $ 700.00 Supplies Expenses $ 800.00 Insurance $ 400.00 Telephone Expenses $ 3,500.00 Salary $ 7,520.00 Salary Payable $ 320.00 Depreciation-Computer Equipment $ 1,650.00 Depreciation-Furniture $ 400.00 Accumulated Depreciiation-Computer Equipment $ 1,650.00 Accumulated Depreciiation-Furniture $ 400.00 Commission Revenue $ 17,100.00 Sam Near's Withdraw $ 2,850.00 Total $ 1,40,870.00 $ 1,24,470.00 Income Statement Revenue Commission Revenue $ 17,100.00 Expenses Office Supplies Expenses $ 800.00 Salary $ 7,520.00 Insurance $ 400.00 Rent $ 3,200.00 Repairs $ 700.00 Depreciation-Office Equipment $ 1,650.00 Depreciation-Furniture $ 400.00 Telephone Expenses $ 3,500.00 Total Expenses $ 18,170.00 net Income $ -1,070.00 Balanance Sheet Cash 42950 Accounts Receivable 3500 Supplies 6800 Prepaid Insurance 1600 Computer Equipment 60000 Furniture 5000 Total Assets 119850 Accumulated Depreciation=Computer Equipment 1650 Accumulated Depreciation=Furniture Equipment 400 Salary Payable 320 Sam Near's Capital 101080 Total Liabilities 103450
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