HELP On April 1, 2015, Jiro Nozomi created a new travel agency, Adventure Travel

Question

HELP On April 1, 2015, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company’s first month. April 1 Nozomi invested $36,000 cash and computer equipment worth $30,000 in the company in exchange for common stock. 2 The company rented furnished office space by paying $2,100 cash for the first month’s (April) rent. 3 The company purchased $1,400 of office supplies for cash. 10 The company paid $2,200 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. 14 The company paid $1,200 cash for two weeks' salaries earned by employees. 24 The company collected $10,500 cash on commissions from airlines on tickets obtained for customers. 28 The company paid $1,200 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 $1,500 cash for this month's telephone bill. 30 The company paid $2,100 cash in dividends.

Explanation / Answer

Journal entries

Date Description Debit Credit April1 Cash $36,000 computer Equipment 30,000 To Common stock $66,000 april 2 Rent expense $2,100 To Cash $2,100 April 3 Office supplies $1,300 To Cash $1,300 april 10 Prepaid insurance $2,200 To Cash $2,200 Aprl 14 Salaries $1,200 To Cash $1,200 april 24 Cash $10,500 To Commission fees $10,500 April 28 Salaries $1,200 To cash $1,200 April 29 Repair expense $500 to Cash $500

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