On March 1, 2015 you created a new travel agency, Jont Travel Agency. The follow
ID: 2425580 • Letter: O
Question
On March 1, 2015 you created a new travel agency, Jont Travel Agency. The following transactions occurred during the company’s first month.
March 1: You invested $20,000 cash and computer equipment worth $40,000 in the company.
March 2: The company rented furnished Office space by paying $1,700 cash for the first month’s (March) rent.
March 3: The company purchased $1,100 of Supplies for cash.
March 10: The company paid $3,600 cash for the premium on a 12-month insurance policy. Coverage begins on March 11.
March 14: The company paid $1,800 cash for two weeks, salaries earned by employees.
March 24: The company collected $7,900 cash on commissions from airlines on tickets obtained from customers.
March 28: The company paid $1,800 cash for two weeks’ salaries earned by employees.
March 29: The company paid $250. cash for minor repairs to the company’s computer.
March 30: The company paid $650. cash for this month’s telephone bill.
March 31: You withdrew $1,500 cash from the company for personal use.
The Company ‘s Chart of Accounts follows:
101 Cash 405 Commissions Earned
106 Accounts Receivable 612 Depreciation Expense – Equip.
124 Supplies 622 Salaries Expense
128 Prepaid Insurance 637 Insurance Expense
167 Computer Equipment 640 Rent & Maintenance Expense
168 Accumulated Depreciation 650 Office Supplies Expense
209 Salaries Payable 684 Repairs Expense
301 Your Name, Capital 688 Telephone Expense
302 Your Name, Withdrawals 700 Income Summary
Please complete the following tasks:
Task 1: Create a New Company file
Task 2: Prepare journal entries to record March transactions:
Task 3: Prepare Trial Balance at end of March:
Task 4: Use the following information to journalize the adjusting Entries:
(a) Two-thirds of one month’s insurance coverage has expired.
(b) At the end of the month, $700 of office supplies are still available.
(c) This month’s depreciation on the computer equipment is $600.
(d) Employees earned $320. of unpaid and unrecorded salaries as of month-end.
(e) The company earned $1,650 of commissions that are not yet billed at month-end (use the Accounts Receivable Account).
Task 5: Prepare the adjusting entries:
Task 6: Prepare the Adjusted Trial Balance at end of March.
Task 7: Prepare Income Statement (Profit & Loss) for March.
Task 8. Prepare the Owners’ Equity Statement for March.
Task 9: Prepare the Balance Sheet at end of March
Task 10: Prepare the closing entries for March.
Task 11. Prepare the Post Closing Trial Balance at end of March.
Task 12: Close the Accounting period for March.
----------------------------------------------- Prepare
l. Journal entries
ll. Trial Balance
III. Adjusting Entries
IV. Adjusting Trial Balance
V. Income Statement
VI. Owners’ Equity Statement
VII. Balance Sheet
VIII. Closing Entries.
IX. Post Closing Trial Balance.
Explanation / Answer
Trial balance
Adjusting entries
Adjusted trial balance
$650
income statment
Commission earned $9,550
less:Expenses
Rent expense 1,700
Salary 3,920
Repair and maintenance 250
Telephone expense 650
Depreciation expense 600
Office supplies 400
insurance expense 200 (7,720)
net income $1,830
Owners equity
capital brought 60,000
Add:Net income 1,830
less:Drawings (1,500)
Closing baalnce $60,330
Date Description Debit Credit march 1 Cash $20,000 Computer equipment 40,000 To Capital $60,000 March 2 Rent expense $1,700 To Cash $1,700 March 3 Supplies 1,100 To Cash 1,100 march 10 Prepaid insurance $3,600 To Cash $3,600 March 14 Salrary expense $1,800 To Cash $1,800 March 24 cash $7,900 To commission earned $7,900Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.