On April 1, 2017, Juan Perez created a new travel agency, Perez Travel. The following transactions occurred during the company’s first month. Apr. 1 Perez invested $39,000 cash and computer equipment worth $12,000 in the company. Apr. 2 The company rented furnished office space by paying $1,900 cash for the first month’s (April) rent. Apr. 3 The company purchased $1,400 of office supplies for cash. Apr. 10 The company paid $2,160 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 $26,000 cash on commissions from airlines on tickets obtained for customers. Apr. 28 The company paid $1,680 cash for two weeks’ salaries earned by employees. Apr. 29 The company paid $800 cash for minor repairs to the company’s computer. Apr. 30 The company paid $450 cash for this month’s telephone bill. Apr. 30 Perez withdrew $1,800 cash from the company for personal use. Information for month-end adjustments follows: Two-thirds (or $120) of one month’s insurance coverage has expired. At the end of the month, $650 of office supplies are still available. This month’s depreciation on the computer equipment is $200. Employees earned $672 of unpaid and unrecorded salaries as of month-end. The company earned $1,840 of commissions that are not yet billed at month-end. QUESTION: General Journal tab - Prepare ALL journal entries for Perez Travel's first month of operations. Prepare any necessary adjusting and closing entries for the current month.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On April 1, 2017, Juan Perez created a new travel agency, Perez Travel. The following transactions occurred during the company’s first month.

Apr.	1	Perez invested $39,000 cash and computer equipment worth $12,000 in the company.
Apr.	2	The company rented furnished office space by paying $1,900 cash for the first month’s (April) rent.
Apr.	3	The company purchased $1,400 of office supplies for cash.
Apr.	10	The company paid $2,160 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 $26,000 cash on commissions from airlines on tickets obtained for customers.
Apr.	28	The company paid $1,680 cash for two weeks’ salaries earned by employees.
Apr.	29	The company paid $800 cash for minor repairs to the company’s computer.
Apr.	30	The company paid $450 cash for this month’s telephone bill.
Apr.	30	Perez withdrew $1,800 cash from the company for personal use.

Information for month-end adjustments follows:

Two-thirds (or $120) of one month’s insurance coverage has expired.
At the end of the month, $650 of office supplies are still available.
This month’s depreciation on the computer equipment is $200.
Employees earned $672 of unpaid and unrecorded salaries as of month-end.
The company earned $1,840 of commissions that are not yet billed at month-end.

QUESTION: General Journal tab - Prepare ALL journal entries for Perez Travel's first month of operations. Prepare any necessary adjusting and closing entries for the current month.

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