On April 1. 2015, Jiro Nozomi crewey ascerred during the companys finse ont Apri

Question

On April 1. 2015, Jiro Nozomi crewey ascerred during the companys finse ont April nomai invested Soum cash aulunputer opapaient aud Travel. Thd Applying cycle PI P2 P3 PA worh $20 000 in the company is es. change for conmon stock 2 The company rented furai hed office space by pay ing $1,800 cash foir the first month's (Apil) 3 The company purchased $1,000 of office supplies for cash 10 The company paid $2.-400 cash for the premium on a 12 month insurance policy. Coverage begins on April 11 4 The company paid S1,600 cash for two weeks" salaries earned by employces 24 The company collected $8,000 cash on commissions from airlines on tic 28 The company paid $1,600 cash for two weeks' salaries carned by employees 29 The company paid $350 cash for minoe repairs to the company's compater 30 The company paid $750 cash for this month's telephone bill. 30 The company paid $1,500 cash in dividends. The company's chart of accounts follows Corrmasioni Earned I01 Cah 05 Accounts Receivable 124 Office Supplies 128 Prepaid Insurance 167 Computer Equipment 612 Depreciation Expense- Computer Equp 622 Salaries Expense 637 Insurance Expense 640 Rent Expense 650 Office Supplies Expense 684 Repairs Expense 688 Telephona Expense 901 Income Summary Equip 209 Salaries Payable 07 Common Stock 318 Retained Eamings 319 Dividends Required 1. Use the balance column format to set up each ledger account listed in its chart of accounts. 2. Prepare jo urnal entries to record the transactions for April and post them to the ledger accounts. The company records prepaid and unearned items in balance sheet accounts. 3. Prepare an unadjusted trial balance as of April 30 4. Use the following information to journalize and post adjusting entries for the month: Check 31 Unadj trial baliance totals, $58,000 a. Two-thirds for $133) of one month's insurance coverage has expired b. Ar the end of the monch. $600 of office supplies arie sill vailable c. This month's depreciation on the computer equipment is $500 d. Employees earned $420 of unpaid and unrecorded salaries as of month-end. e. The company earned $1,750 of commissions that are not yet billed at month-end. Expense, $133 5. Prepare the adjusted trial halance as of April 30. Prepare the income statement and the statement of retained earnings for the month of April and the balance sheet at April 30, 2015 6. Prepare journal entries to close the temporary accounts and post these entries to the ledger 7. Prepare a post-closing trial balance.

Explanation / Answer

1. Journal entries

2. T-accounts

3. Trial Balance

4. Adjusted entries

Date Particulars L.F Amount ($) Amount ($) Apr-01 Cash 30,000 Computer Equipment 20,000 Common Stock 50,000 (for cash and computer equipment invested) Apr-02 Rent Expense 1,800 cash 1,800 (for rent paid for December) Apr-03 Office Supplies 1,000 Cash 1,000 (For office supplies purchased) Apr-10 Prepaid Insurance 2,400 Cash 2,400 (For cash paid for premium) Apr-14 Salaries exp 1,600 cash 1,600 (for cash paid for salaries) Apr-24 Cash 8,000 Consulting fees 8,000 (for cash collected for consulting) Apr-28 Salaries exp 1,600 cash 1,600 (for cash paid for salaries) Apr-29 Repairs Expense 350 cash 350 (For cash paid for repairs) Apr-30 Telephone Exp 750 Cash 750 (for cash paid for telephone bill) Apr-30 Dividends 1,500 Cash 1,500 (For cash paid for dividends)

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