Loose Leaf for Fundamental Accounting Principles

23rd Edition

ISBN: 9781259687709

Author: John J Wild, Ken Shaw Accounting Professor, Barbara Chiappetta Fundamental Accounting Principles

Publisher: McGraw-Hill Education

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Textbook Question

Chapter 4, Problem 1APSA

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:

Chapter 4, Problem 1APSA, Problem 4-1A Applying the accounting cycle C1 C2 P2P3 On April 1, 2017, Jiro Nozomi created a new

Required

1. Use the balance column format to set up each ledger account listed in its chart of accounts.

2. Prepare journal entries to record the transactions for April and post them to the ledger accounts. The company records prepaid and unearned items in balance sheet accounts.

3. Prepare an unadjusted trial balance as of April 30.

4. Use the following information to journalize and post adjusting entries for the month:

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 depreciation on the computer equipment is $500.

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 post these entries to the ledger.

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

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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Chapter 4, Problem 17E

Chapter 4, Problem 2APSA

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Chapter 4 Solutions

Loose Leaf for Fundamental Accounting Principles

Ch. 4 - Prob. 1DQ Ch. 4 - Prob. 2DQ Ch. 4 - Prob. 3DQ Ch. 4 - Prob. 4DQ Ch. 4 - Prob. 5DQ Ch. 4 - Prob. 6DQ Ch. 4 - 7. Why are the debit and credit entries in the...Ch. 4 - Prob. 8DQ Ch. 4 - Prob. 9DQ Ch. 4 - Prob. 10DQ

Ch. 4 - Prob. 11DQ Ch. 4 - 12. How do reversing entries simplify...Ch. 4 - If a company recorded accrued salaries expense of...Ch. 4 - Prob. 14DQ Ch. 4 - Prob. 15DQ Ch. 4 - Prob. 16DQ Ch. 4 - Prob. 17DQ Ch. 4 - Prob. 1QS Ch. 4 - Prob. 2QS Ch. 4 - Prob. 3QS Ch. 4 - Prob. 4QS Ch. 4 - Prob. 5QS Ch. 4 - Prob. 6QS Ch. 4 - Prob. 7QS Ch. 4 - Prob. 8QS Ch. 4 - Prob. 9QS Ch. 4 - Prob. 10QS Ch. 4 - Prob. 11QS Ch. 4 - Prob. 12QS Ch. 4 - Exercise 4-1 Extending adjusted account balances...Ch. 4 - Prob. 2E Ch. 4 - Prob. 3E Ch. 4 - Exercise 4-4 Completing a work sheet Pl The...Ch. 4 - Exercise 4-5 Determining effects of closing...Ch. 4 - Prob. 6E Ch. 4 - Exercise 4-7 Preparing a work sheet and recording...Ch. 4 - Prob. 8E Ch. 4 - Prob. 9E Ch. 4 - Prob. 10E Ch. 4 - Prob. 11E Ch. 4 - Prob. 12E Ch. 4 - Exercise 4-13 Computing the current ratio A1 Use...Ch. 4 - Prob. 14E Ch. 4 - Prob. 15E Ch. 4 - Prob. 16E Ch. 4 - Prob. 17E Ch. 4 - Problem 4-1A Applying the accounting cycle C1 C2...Ch. 4 - Prob. 2APSA Ch. 4 - Prob. 3APSA Ch. 4 - Prob. 4APSA Ch. 4 - Problem 4-5A Preparing trial balances, closing...Ch. 4 - Prob. 6APSA Ch. 4 - Prob. 1BPSB Ch. 4 - Prob. 2BPSB Ch. 4 - Prob. 3BPSB Ch. 4 - Prob. 4BPSB Ch. 4 - Prob. 5BPSB Ch. 4 - Prob. 6BPSB Ch. 4 - Business Solutions P2 P3 (This serial problem...Ch. 4 - Prob. 1GLP Ch. 4 - Prob. 2GLP Ch. 4 - Prob. 3GLP Ch. 4 - Prob. 4GLP Ch. 4 - Prob. 5GLP Ch. 4 - Prob. 1BTN Ch. 4 - Prob. 2BTN Ch. 4 - Prob. 3BTN Ch. 4 - Prob. 4BTN Ch. 4 - Prob. 5BTN Ch. 4 - Prob. 6BTN Ch. 4 - Prob. 7BTN Ch. 4 - Prob. 8BTN Ch. 4 - Prob. 9BTN

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