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Problem 4-2A Applying the accounting cycle LO C1, C2, P2, P3 [The following info

ID: 2479915 • Letter: P

Question

Problem 4-2A Applying the accounting cycle LO C1, C2, P2, P3

[The following information applies to the questions displayed below.]






1,900

Using account balances from part 6.2, prepare an unadjusted trial balance as of April 30.

I NEED THE ANSWER FOR THE BELOW

Journalize the adjusting entries for the month and then post to section 6.2. (Do not round intermediate calculations.)

1.

Two-thirds (or $167) of one month’s insurance coverage has expired.

2.

At the end of the month, $500 of office supplies are still available.

3.

This month’s depreciation on the computer equipment is $500.

4.

Employees earned $360 of unpaid and unrecorded salaries as of month-end.

5.

The company earned $1,500 of commissions that are not yet billed at month-end.

Problem 4-2A Part 5

Prepare the income statement for the month of April 30, 2013.

      

  

Prepare the statement of owner's equity for the month of April 30, 2013.

Prepare the balance sheet at April 30, 2013.

Prepare journal entries to close the temporary accounts and then post to section 6.2.

transaction list×

1.

Record closing of the revenue account.

2.

Record closing of the expense accounts.

3.

Record closing of income summary.

4.

Record closing of the withdrawals account.

Post the journal entries to the ledger.

Prepare the adjusted trial balance as of April 30.

Prepare a post-closing trial balance. (Please prepare your trial balance in chart of accounts order given in the question.)

On April 1, 2013, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company’s first month.

Explanation / Answer

Adjusted Trial Balances April 30, 2013

Particulars ::::::::::::::::::::::::::::::Debit:::::::::::::::::::::::::::Credit

Cash :::::::::::::::::::::::::::::::::::::$34,950

Accounts Receivable:::::::::::::::::0

Office Supplies Expense:::::::$1,900

Prepaid Insurance::::::::::::::::::$3,000

Computer equipment ::::::::::::$40,000

Accumulated depreciation—:::::::::::::::::::::::::::::::::::::::::::0

Salaries Payable::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::0

Nozomi, Capital::::::::::::::::::::::::::::::::::::::::::::::::::::::$81,000

Nozomi, Withdrawals:::::::::::::$1,900

Commission Earned:::::::::::::::::::::::::::::::::::::::::::::::::$8,000

Depreciation expense— ::::::::::::::0

Salaries Expense:::::::::::::::::::::$3,200

Insurance expense::::::::::::::::::::::::0

Rent Expense::::::::::::::::::::::::::$2,500

Office supplies expense:::::::::::$0

Repairs expense:::::::::::::::::::::::: $300

Telephone expense :::::::::::::::::::$1,250

_____________________________________________________

Total ::::::::::::::::::::::::::::::::::::::::$89,000::::::::::::::::::::$89,000

______________________________________________________

Journalize the adjusting entries for the month

Date::::::::::::::::Particulars::::::::::::::::::::::::::::::::::::::::::::::::::LF:::::::::::::::::::Debit:::::::::::::::::Credit

1):::::::::::::::::::::By Insurance a/c Dr ::::::::::::::::::::::::::::::N/A :::::::::::::::::$167

                            To Prepaid Insurance A/c ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$167

________________________________________________________________________________

2)::::::::::::::::::::::By Office supplies Expense A/c:::::::::::::::N/A::::::::::::::::$1,400

                              To Office Supplies A/c :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$1,400

________________________________________________________________________________

3):::::::::::::::::::By Depreciation Expense A/c::::::::::::::::::::N/A:::::::::::::::::::$500

                             To accumulated Depreciation A/c::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$500

_________________________________________________________________________________

4:::::::::::::::::By Salary expense A/c:::::::::::::::::::::::::::::::::N/A:::::::::::::::::::::::$360

::::::::::::::::::::::::::To Salaries payable A/c :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$360

_______________________________________________________________________________

5:::::::::::::::::BY Accounts Receivable A/c Dr ::::::::::::::::::::N/A:::::::::::::::::::::$1,500

::::::::::::::::::::::::::To Commission Earned A/c::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$1,500

________________________________________________________________________________

Income statement for the month of April 30, 2013.

Particulars:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::Amount

REvenue:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$9,500

Expenses:

Depreciation Expenses:::::::$500

Salary Expenses:::::::::::::::::$3,560

Insurance Expenses :::::::::::$167

Rent Expenses::::::::::::::::::::$2,500

Office Supplies Expenses::::$1,400

Telephone Expenses :::::::::::$1,250

Repairs Expense:::::::::::::::::::::$300

________________________________________$9,677

_____________________________________________

Net Loss:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::(177)

______________________________________________________________________________________

Statement of owner's equity for the month of April 30, 2013.

Particulars::::::::::::::::::::::::::::::::::::::::::::::::::Amount:::::::::::::::::::Amount

Nozomi Capital:::::::::::::::::::::::::::::::::::::::::$81,000

Less: Net loss::::::::::::::::::::::::::::::::::::::::::::::::$177

________________________________________________$80,823

Less: Withdrawls::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$1,900

________________________________________________________

Nozomi Capital as on April 30, 2013:::::::::::::::::::::::::::::::::::::::$78,923

____________________________________________________________________________________

                                                         

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