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Problem 4-1A
Applying the accounting cycle
C1 C2 P2P3
On April 1, 2017, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company’s first month.
April 1 Nozomi invested $30,000 cash and computer equipment worth $20,000 in the company.
2 The company rented furnished office space by paying $1,800 cash for the first month’s (April) rent.
3 The company purchased $1,000 of office supplies for cash.
to The company paid $2,400 cash for the premium on a 12-month insurance policy. Coverage begins on AprIl 11.
14 The company paid $1,600 cash for two weeks’ salaries earned by employees.
24 The company collected $8,000 cash on commissions from airlines on tickets obtained for customers.
28 The company paid $ 1,600 cash for two weeks’ salaries earned by employees.
29 The company paid $350 cash for minor repairs to the company’s computer.
30 The company paid $750 cash for this month’s telephone bill.
30 Nozomi withdrew $1,500 cash from the company for personal use.
The company’s chart of accounts follows:
Required
1. Use the balance column format to set up each ledger account listed in its chart of accounts.
2. Prepare
3. Prepare an unadjusted
4. Use the following information to journalize and post
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
d. Employees earned S42o 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.
5. Prepare the adjusted trial balance as of April 30. Prepare the income statement and the statement of owner’s equity for the month of April
and the balance sheet at April 30,2017.
6. Prepare journal entries to close the temporary accounts and
7. Prepare a post- closing trial balance.
Check (3) Unadj trial balance totals $58.000
(4a) Dr Insurance Expense $133
(5) Net income $2,197 J Nozom. Capital (4130/2017). $50.697. Total assets. $51.117
(7) P.C mal balance totals $51,617
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Chapter 4 Solutions
Fundamental Accounting Principles
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