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 the 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.
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
![On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first
month.
April 2 Nozomi invested $37,000 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 $1,600 cash for the first month's (April) rent.
April 4 The company purchased $1,400 of office supplies for cash.
April 10 The company paid $2,700 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 $13,500 cash for commissions revenue.
April 28 The company paid $1,100 cash for two weeks' salaries earned by employees.
April 29 The company paid $350 cash for minor repairs to computer equipment.
April 30 The company paid $950 cash for this month's telephone bill.
April 30 The company paid $1,570 cash in dividends.
The company's chart of accounts follows:
101 Cash
106 Accounts Receivable
124 Office Supplies
128 Prepaid Insurance
167 Computer Equipment
168 Accumulated Depreciation-Computer Equipment
209 Salaries Payable
307 Common Stock
318 Retained Earnings
319 Dividends
Use the following information to prepare adjusting entries:
a. Prepaid insurance of $150 expired this month.
b. At the end of the month, $600 of office supplies are still available.
c. This month's depreciation on computer equipment is $500.
d. Employees earned $560 of unpaid and unrecorded salaries as of month-end.
e. The company earned $1,800 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
the date.
Req 1 and 2
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.
Cash
Office supplies
Req 3
Prepare a post-closing trial balance.
Req 4
Totals
Req 5A
ADVENTURE TRAVEL
Post-Closing Trial Balance
April 30
Account Title
Prepaid insurance
Computer equipment
Accumulated depreciation- Computer equipment
Common stock
Retained earnings
✓ S
✓
✓
X
X
$
403 Commissions Revenue
612 Depreciation Expense-Computer Equipment
622 Salaries Expense
Req 5B
637 Insurance Expense
640 Rent Expense
Debit
60,230 X
1,400 X
2,700 X
650 Office Supplies Expense
684 Repairs Expense
688 Telephone Expense
901
Income Summary
20,000
84,330
X
Req 5C
Credit
Req 5D
500
57,000✔
4,705 X
$ 62,205
X
Req 6A
Req 6B GL
Req 7](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcaf13337-fb8a-4943-9515-20caf500f130%2Fdc24de6d-c2e7-4668-a58d-b24f771f3cec%2Fumsobkm_processed.png&w=3840&q=75)
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