Question 7 167Computer Equipment640Rent Expense650 Office Supplies Expense684 Repairs Expense688 Telephone Expense901 Income Summary168 Accumulated Depreciation-Computer Equipment209 Salaries Payable307Common Stock318Retained Earnings319 DividendsUse the following information to prepare adjusting entries:a. Prepaid insurance of $160 expired this month.b. At the end of the month, $400 of office supplies are still available.c. This month's depreciation on computer equipment is $400.d. Employees earned $340 of unpaid and unrecorded salaries as of month-end.e. The company earned $2,150 of commissions revenue that is not yet recorded at month-end.Required:1. & 2. Prepare journal entries to record the transactions for April and post them to ledger accounts in Requirement 6B GL tab. Thecompany records prepaid and unearned items in balance sheet accounts.3. Using account balances from Requirement 6B GL tab, prepare an unadjusted trial balance as of April 30.4. Journalize the adjusting entries for the month, and then post to the ledger on Requirement 6B GL tab, using April 30 Adjusted asthe date.5a. Using adjusted account balances from Requirement 6B GL tab, prepare an adjusted trial balance as of April 30.5b. Prepare the income statement for the month of April 30.5c. Prepare the statement of retained earnings for the month of April 30.5d. Prepare the balance sheet at April 30.6a. Prepare journal entries to close the temporary accounts and then post to Requirement 6B GL tab, using April 30 Close as the date.6b. Post the journal entries to the ledger.7. Prepare a post-closing trial balance.Complete this question by entering your answers in the tabs below. On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's firstmonth.April 2 Nozomi invested $45,000 cash and computer equipment worth $40,000 in the company in exchange for its commonstock.April 3 The company rented furnished office space by paying $2,100 cash for the first month's (April) rent.April 4 The company purchased $1,200 of office supplies for cash.April 10 The company paid $2,880 cash for a 12-month insurance policy. Coverage begins on April 11.April 14 The company paid $1,100 cash for two weeks' salaries earned by employees.April 24 The company collected $12,500 cash for commissions revenue.April 28 The company paid $1,100 cash for two weeks' salaries earned by employees.April 29 The company paid $450 cash for minor repairs to computer equipment.April 30 The company paid $900 cash for this month's telephone bill.April 30 The company paid $1,600 cash in dividends.The company's chart of accounts follows:101 Cash403 Commissions RevenueAccounts ReceivableOffice Supplies128 Prepaid Insurance167 Computer Equipment612 Depreciation Expense-Computer Equipment622 Salaries Expense637 Insurance Expense640 Rent Expense650 Office Supplies Expense684 Repairs Expense688 Telephone Expense106124168 Accumulated Depreciation-Computer Equipment209Salaries Payable307Common Stock318Retained Earnings901Income Summary319 DividendsUse the following information to prepare adjusting entries:a. Prepaid insurance of $160 expired this month.b. At the end of the month, $400 of office supplies are still available.c. This month's depreciation on computer equipment is $400.d. Employees earned $340 of unpaid and unrecorded salaries as of month-end.e. The company earned $2,150 of commissions revenue that is not yet recorded at month-end.

Trial Balance: A trial balance is an accounting worksheet where the balance of all records is…

167 Computer Equipment 640 Rent Expense 168 Accumulated Depreciation-Computer Equipment 650 Office Supplies Expense 684 Repairs Expense 688 Telephone Expense 901 Income Summary 209 Salaries Payable 307 Common Stock 318 Retained Earnings 319 Dividends Use the following information to prepare adjusting entries: a. Prepaid insurance of $160 expired this month. b. At the end of the month, $400 of office supplies are still available. c. This month's depreciation on computer equipment is $400. d. Employees earned $340 of unpaid and unrecorded salaries as of month-end. e. The company earned $2,150 of commissions revenue that is not yet recorded at month-end. Required: 1. & 2. Prepare journal entries to record the transactions for April and post them to ledger accounts in Requirement 6B GL tab. The company records prepaid and unearned items in balance sheet accounts. 3. Using account balances from Requirement 6B GL tab, prepare an unadjusted trial balance as of April 30. 4. Journalize the adjusting entries for the month, and then post to the ledger on Requirement 6B GL tab, using April 30 Adjusted as he date. Sa. Using adjusted account balances from Requirement 6B GL tab, prepare an adjusted trial balance as of April 30. Sb. Prepare the income statement for the month of April 30.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q