## Journal Entry Worksheet Instructions### Step-by-Step Guide to Closing Accounting Entries#### Step 1: Closing Revenue Accounts1. **Instruction**: Record the entry to close the revenue account(s).2. **Note**: Enter debits before credits.3. **Journal Format**: - **Date**: April 30 - **General Journal Entries**: - Rows are provided to list individual entries under the columns **General Journal**, **Debit**, and **Credit**. ``` | Date | General Journal | Debit | Credit | |---------|-----------------|-------|--------| | April 30| | | | | | | | | | | | | | | | | | | | | | | | ```4. **Actions Available**: - **Record entry**: Save the journal entry. - **Clear entry**: Remove all the information in the current journal entry. - **View general journal**: Review all recorded journal entries.#### Step 2: Closing Expense Accounts1. **Instruction**: Record the entry to close the expense account(s).2. **Note**: Enter debits before credits.3. **Journal Format**: - **Date**: April 30 - **General Journal Entries**: - Rows are provided to list individual entries under the columns **General Journal**, **Debit**, and **Credit**. ``` | Date | General Journal | Debit | Credit | |---------|-----------------|-------|--------| | April 30| | | | | | | | | | | | | | | | | | | | | | | | ```4. **Actions Available**: - **Record entry**: Save the journal entry. - **Clear entry**: Remove all the information in the current journal entry. - **View general journal**: Review all recorded journal entries.#### Step 3: Closing the Income Summary1. **Instruction**: Record the entry to close the income summary.2. **Note**: Enter debits before credits.3. **Journal Format**: - **Date**: April 30 ---**Adventure Travel's First Month Transactions and Adjusted Trial Balances**On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month:1. **April 1**: - Nozomi invested $30,000 cash and computer equipment worth $20,000 in the company in exchange for its common stock. 2. **April 2**: - The company prepaid $1,800 cash for 12 months' rent for the first month’s (April’s) rent. 3. **April 3**: - The company made credit purchases of office supplies for $600 and office equipment for $2,000. Coverage begins on April 11. 4. **April 10**: - The company completed services for a client and immediately received $3,200 cash. 5. **April 14**: - The company completed a $10,000 consulting engagement. The client promised to pay within 30 days. 6. **April 20**: - The company paid $500 cash for the assistant’s salary. 7. **April 24**: - The company received $10,000 cash as a partial payment for the work completed on April 14. 8. **April 28**: - The company paid $750 cash for this month’s telephone bill. 9. **April 29**: - The company paid $2,400 cash for dividends.**Company's Chart of Accounts:**| Account No. | Account Title ||-------------|-----------------------------------------------|| 101 | Cash || 106 | Accounts Receivable || 126 | Office Supplies || 128 | Prepaid Insurance || 167 | Computer Equipment || 168 | Accumulated Depreciation – Computer Equipment || 201 | Accounts Payable || 203 | Salaries Payable || 208 | Interest Payable || 210 | Rent Payable || 213 | Telephone Payable || 216 | Unearned Consulting Revenue || 307 | Common Stock || 318 | Retained Earnings || 319 | Dividends ||

Financial Statements -Financial Statement includes Income Statement, Statement of Retained Earnings,…

On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month. April 2 Soon invested $30,000 cash and computer equipment worth $20,000 in the company in exchange for its common stock. April 3 The company rented furnished office space by paying $1,800 cash for the first month's (April) rent. April 4 The company purchased $1,000 of office supplies for cash. April 10 The company paid $2,400 cash for a 12-month insurance policy. Coverage begins on April 11. April 14 The company paid $1.600 cash for two weeks' salaries earned by employees. April 24 The company collected $8,000 cash for commissions revenue. April 2 The company paid $1,600 cash for two weeks' salaries earned by employees. April 29 The company paid $350 cash for sinor repairs to computer equipment. April 30 The company paid $750 cash for this month's telephone bill. April 30 The company paid $1,500 cash in dividends. The company's chart of accounts follows. 101 Cas 106 Accounts Receivable 124 office Supplies 128 Prepaid Insurance 167 *** 148 Accumulated Depreciation-Computer Equipment 209 Salaries Payable 307 Common Stock 318 Retained Earnings 319 Dividends 403 Commissions Revenue 62 Depreciation Expense-Computer Equipment 622 Salaries 637 Insurance Expense 640 Rent Expense 650 Office Supplies Expense ses Repairs see Telephone 1 901 Ineone Sunary Expense Use the following information to prepare adjusting entries: a. Prepaid insurance of $133 expired this month. b. At the end of the month, $600 of office supplies are still available. Expense c. This month's depreciation on 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 revenue that is not yet recorded at month-end. Required: 1. & 2. Prepare journal entries to record the transactions for Aprill 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 68 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 68 GL tab, using April 30 Adjusted as the date. Sa. Using adjusted account balances from Requirement 68 GL tab, prepare an adjusted trial balance as of April 30. Sb. Prepare the income statement for the month of April 30. Sc. Prepare the statement of retained earnings for the month of April 30. Sd. Prepare the balance sheet at April 30. Ga. Prepare journal entries to close the temporary accounts and then post to Requirement 6B GL tab, using April 30 Close as the date. Gb. Post the journal entries to the ledger 7. Prepare a post-closing trial balance.

On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month. April 2 Soon invested $30,000 cash and computer equipment worth $20,000 in the company in exchange for its common stock. April 3 The company rented furnished office space by paying $1,800 cash for the first month's (April) rent. April 4 The company purchased $1,000 of office supplies for cash. April 10 The company paid $2,400 cash for a 12-month insurance policy. Coverage begins on April 11. April 14 The company paid $1.600 cash for two weeks' salaries earned by employees. April 24 The company collected $8,000 cash for commissions revenue. April 2 The company paid $1,600 cash for two weeks' salaries earned by employees. April 29 The company paid $350 cash for sinor repairs to computer equipment. April 30 The company paid $750 cash for this month's telephone bill. April 30 The company paid $1,500 cash in dividends. The company's chart of accounts follows. 101 Cas 106 Accounts Receivable 124 office Supplies 128 Prepaid Insurance 167 *** 148 Accumulated Depreciation-Computer Equipment 209 Salaries Payable 307 Common Stock 318 Retained Earnings 319 Dividends 403 Commissions Revenue 62 Depreciation Expense-Computer Equipment 622 Salaries 637 Insurance Expense 640 Rent Expense 650 Office Supplies Expense ses Repairs see Telephone 1 901 Ineone Sunary Expense Use the following information to prepare adjusting entries: a. Prepaid insurance of $133 expired this month. b. At the end of the month, $600 of office supplies are still available. Expense c. This month's depreciation on 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 revenue that is not yet recorded at month-end. Required: 1. & 2. Prepare journal entries to record the transactions for Aprill 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 68 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 68 GL tab, using April 30 Adjusted as the date. Sa. Using adjusted account balances from Requirement 68 GL tab, prepare an adjusted trial balance as of April 30. Sb. Prepare the income statement for the month of April 30. Sc. Prepare the statement of retained earnings for the month of April 30. Sd. Prepare the balance sheet at April 30. Ga. Prepare journal entries to close the temporary accounts and then post to Requirement 6B GL tab, using April 30 Close as the date. Gb. Post the journal entries to the ledger 7. Prepare a post-closing trial balance.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter3: Processing Accounting Information

Section: Chapter Questions

Problem 3.15MCE: Journal Entries Following is a list of transactions entered into during the first month of...

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