Chapter 4 Chapter 4 On April 1, 2017, Jiro Nozomi created a new travel agency Ad

Question

Chapter 4 Chapter 4 On April 1, 2017, Jiro Nozomi created a new travel agency Adventure Travel. The following transactions occurred during the company first month. Apr. 1 Nozomi invested $3e,8ee cash and computer equipment worth $20,80e in the company. Apr. 2 The company rented furnished office space by paying $1,800 cash for the first month's (April) rent. Apr. 3 The company purchased $1,008 of office supplies for cash. Apr. 18 The company paid $2,488 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. Apr. 14 The company paid $1,680 cash for two weeks' salaries earned by employees. Apr. 24 The company collected $8,800 cash on commissions from airlines on tickets obtained for customers. Apr. 28 The company paid $1,688 cash for two weeks' salaries earned by employees. Apr. 29 The company paid $350 cash for minor repairs to the company's computer. Apr. 38 The company paid $750 cash for this month's telephone bill. Apr. 3e Nozomi withdrew $1,s80 cash from the company for personal use. ed Information for month-end adjustments follows: a. Two-thirds (or $133) of one month's insurance coverage has expired b. At the end of the month, $600 of office supplies are still available. 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 GeneralTrial Balance Statement St Owners Equity Income Requirement General RequirementJournal Balance Sheet Post Closing General Journal tab -Prepare journal entries for Adventure Travel's first month of operations. Prepare any necessary adjusting and closing entries for the current month. General Ledger tab - Each journal entry is posted automatically to the general ledger. Use the drop-down button to view

Explanation / Answer

Part 1 Journal Entry Worksheet

Accounts receivable

Commission Income

Accumulated depreciation journal

Part 2 Income Statement

Net Income

Part 3 Statement of Owner's equity

Part 4 Balance Sheet

Date Particulars Debit Credit April 1 Bank $30000 Computer $20000 Nozomi equity $50000 April 2 Rent $1800 Bank $1800 April 3 Office supplies $1000 Bank $1000 April 10 Insurance premium $2400 Bank $2400 April 14 Salary $1600 Bank $1600 April 24 Bank $8000 Commission Income $8000 April 28 salary $1600 Bank $1600 April 29 Repairs $350 Bank $350 April 30 Telephone expenses $750 Bank $750 April 30 Nozomi Drawings $1500 Bank $1500 April 30 Prepaid Insurance premium $2267 Insurance Premium $2267 April 30 Accumulated Depreciation $500 Computer $500 April 30 Salary expenses $420 Outstanding salary expenses $420 April 30 Supplies expenses ($1000 - $400) $400 Supplies $400 April 30

Accounts receivable

Commission Income

$1750 $1750

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