Concept explainers
Concept introduction:
In accounting,
comprises of either debit or credit transaction. The
Adjusted
Requirement 1:
To determine:
We have to determine the balance column format to open the ledger account.

Answer to Problem 1APSA
Solution:
Ledger accounts
101 Cash account | |||||
date | debit | credit | Balance | ||
0 |
301 Capital account | |||||
date | debit | credit | Balance | ||
0 |
167 Computer account | |||||
date | debit | credit | Balance | ||
0 |
688 Telephone expense account | |||||
date | debit | credit | Balance | ||
0 |
684 Repair expense account | |||||
date | debit | credit | Balance | ||
0 |
622 Salaries expense account | |||||
date | debit | credit | Balance | ||
0 |
405 Commission earned account | |||||
date | debit | credit | Balance | ||
0 |
128 Prepaid insurance account | |||||
date | debit | credit | Balance | ||
0 |
124Office supplies account | |||||
date | debit | credit | Balance | ||
0 |
640 Rent expense account | |||||
date | debit | credit | Balance | ||
0 |
612 | |||||
date | debit | credit | Balance | ||
0 |
168 | |||||
date | debit | credit | Balance | ||
0 |
106 | |||||
date | debit | credit | Balance | ||
0 |
901 income summary | |||||
date | debit | credit | Balance | ||
0 |
Explanation of Solution
Explanation:
All ledger account has been opened with the nil balance in balance column format i.e. first column is for date , second column is for debit and third is for credit column and final column is for balance column.
Requirement 1:
To determine:
We have to determine the journal entry and post them to the ledger account.
Requirement 1:

Answer to Problem 1APSA
Solution:
DATE | Journal titles | Debit($) | Credit($) |
April 01 | Cash | 30,000 | |
Computer equipment | 20,000 | ||
j. Nozomi capital | 50,000 | ||
(to record investment in cash and equipment) | |||
April 02 | Rent expense | 1800 | |
cash | 1800 | ||
( to record rent payment) | |||
April 03 | Office supplies | 1000 | |
Cash | 1000 | ||
( to record purchase of office supplies) | |||
April 10 | Prepaid insurance | 2400 | |
cash | 2400 | ||
( to record insurance paid) | |||
April 14 | cash | 8000 | |
Commission earned | 8000 | ||
( to record commission earned) | |||
April 28 | Salaries expense | 1600 | |
Cash | 1600 | ||
( to record salary expense) | |||
April 29 | Repair expense | 350 | |
cash | 350 | ||
( to record expense of repair) | |||
April 30 | Telephone expense | 750 | |
cash | 750 | ||
( to record telephone expense) | |||
April 30 | J. Nozomi capital | 1500 | |
cash | 1500 | ||
( to record withdrawal of cash for personal use) |
Ledger accounts
Cash account | |||||
date | debit | credit | Balance | ||
April 01 | 30,000 | 30,000 | |||
April 02 | 1800 | 28,200 | |||
April 03 | 1000 | 27,200 | |||
April 10 | 2400 | 24,800 | |||
April 14 | 1600 | 23,200 | |||
April 24 | 8000 | 31,200 | |||
April 28 | 1600 | 29,600 | |||
April 29 | 350 | 29,250 | |||
April 30 | 750 | 28,500 | |||
April 30 | 1500 | 27,000 |
Capital account | |||||
Date | debit | credit | Balance | ||
April 1 | 50,000 | 50,000 |
Computer account | |||||
date | debit | credit | Balance | ||
April 1 | 20,000 | 20,000 |
Telephone expense account | |||||
date | debit | credit | Balance | ||
April 30 | 750 | 750 |
Repair expense account | |||||
date | debit | credit | Balance | ||
April 29 | 350 | 350 |
Salaries expense account | |||||
date | debit | credit | Balance | ||
April 14 | 1600 | 1600 | |||
April 28 | 1600 | 3200 |
Commission earned account | |||||
date | debit | credit | Balance | ||
April 24 | 8000 | 8000 |
Prepaid insurance account | |||||
date | debit | credit | Balance | ||
April 10 | 2400 | 2400 |
Office supplies account | |||||
date | debit | credit | Balance | ||
April 3 | 1000 | 1000 |
Rent expense account | |||||
date | debit | credit | Balance | ||
April 2 | 1800 | 1800 |
Explanation of Solution
Explanation:
- In the given case, cash account and computer equipment account will be debited and capital account will be credited.
- In the given case, rent expense account will be debited and cash account will be credited.
- When office supplies is purchased then office supplies account will be debited and cash account will be credited.
- In this case, prepaid insurance account will be debited and cash account will be credited.
- In this case, salaries expense account will be debited and cash account will be credited.
- When commission is earned then cash account will be debited and commission account will be credited.
- When repair and telephone expense is incurred then repair account and telephone expense account will be debited and cash account will be credited.
- Hen cash is withdrew then withdrawal account will be debited and cash account will be credited.
Requirement 3:
To determine:
We have to determine the unadjusted trial balance.
Requirement 3:

Answer to Problem 1APSA
Solution:
J. Nozomi Travel April 30, 2013 | ||||
Account title | Debit($) | Credit($) | ||
101: cash | 27000 | |||
106: accounts receivable | 0 | |||
124: office supplies | 1,000 | |||
128: prepaid insurance | 2,400 | |||
167: computer equipment | 20,000 | |||
168: accumulated depreciation- computer equipment | 0 | |||
209: salaries payable | 0 | |||
301: j. nozomi capital | 50,000 | |||
302: J. nozomi withdrawals | 1,500 | |||
405: commission earned | 8,000 | |||
612: depreciation expense-computer equipment | 0 | |||
622: salaries expense | 3,200 | |||
637:insurance expense | 0 | |||
640: rent expense | 1,800 | |||
650:office supplies expense | 0 | |||
684: repair expense | 350 | |||
688: telephone expense | 750 | |||
Total | $58,000 | $ 58,000 |
Explanation of Solution
Explanation:
Cash account | |||||
date | debit | credit | Balance | ||
April 01 | 30,000 | 30,000 | |||
April 02 | 1800 | 28,200 | |||
April 03 | 1000 | 27,200 | |||
April 10 | 2400 | 24,800 | |||
April 14 | 1600 | 23,200 | |||
April 24 | 8000 | 31,200 | |||
April 28 | 1600 | 29,600 | |||
April 29 | 350 | 29,250 | |||
April 30 | 750 | 28,500 | |||
April 30 | 1500 | 27,000 |
Capital account | |||||
Date | debit | credit | Balance | ||
April 1 | 50,000 | 50,000 |
Computer account | |||||
date | debit | credit | Balance | ||
April 1 | 20,000 | 20,000 |
Telephone expense account | |||||
date | debit | credit | Balance | ||
April 30 | 750 | 750 |
Repair expense account | |||||
date | debit | credit | Balance | ||
April 29 | 350 | 350 |
Salaries expense account | |||||
date | debit | credit | Balance | ||
April 14 | 1600 | 1600 | |||
April 28 | 1600 | 3200 |
Commission earned account | |||||
date | debit | credit | Balance | ||
April 24 | 8000 | 8000 |
Prepaid insurance account | |||||
date | debit | credit | Balance | ||
April 10 | 2400 | 2400 |
Requirement 4:
To determine:
We have to determine the
Requirement 4:

Answer to Problem 1APSA
Solution:
DATE | Journal titles | Debit($) | Credit($) |
a. | Insurance expense | 133 | |
Prepaid insurance | 133 | ||
( to record prepaid insurance) | |||
b. | Office supplies expense | 400 | |
Office supplies | 400 | ||
( to record office supply still available) | |||
c. | Depreciation expense-computer equipment | 500 | |
Accumulated depreciation- computer equipment | 500 | ||
( to record depreciation) | |||
d. | Salaries expense | 420 | |
Salaries payable | 420 | ||
( to record unrecorded salary) | |||
e. | Accounts receivable | 1,750 | |
Commission earned | 1,750 | ||
( to record commission earned) |
Explanation of Solution
Explanation:
- In the given case, insurance expense account will be debited and prepaid insurance account will be credited.
- In this case, office supplies expenses account will be debited and office supplies will be credited.
- When depreciation is to be provided then depreciation expense account will be debited and accumulated depreciation account will be credited.
- In this case, salaries expense account will be debited and salaries payable account will be credited.
- In the given case, accounts receivable account will be debited and commission earned account will be credited.
Requirement 5:
To determine:
We have to determine the adjusted trial balance, income statement and balance sheet.
Requirement 5:

Answer to Problem 1APSA
Solution:
J. Nozomi Travel April 30, 2013 | ||||
Account title | Debit($) | Credit($) | ||
101: cash | 27000 | |||
106: accounts receivable | 1750 | |||
124: office supplies | 600 | |||
128: prepaid insurance | 2,267 | |||
167: computer equipment | 20,000 | |||
168: accumulated depreciation- computer equipment | 500 | |||
209: salaries payable | 420 | |||
301: j. nozomi capital | 50,000 | |||
302: J. nozomi withdrawals | 1,500 | |||
405: commission earned | 9750 | |||
612: depreciation expense-computer equipment | 500 | |||
622: salaries expense | 3,620 | |||
637:insurance expense | 133 | |||
640: rent expense | 1,800 | |||
650:office supplies expense | 400 | |||
684: repair expense | 350 | |||
688: telephone expense | 750 | |||
Total | $60,670 | $ 60,670 |
J. Nozomi Travel For month ended April 30, 2013 | |||||
Account title | amount($) | amount($) | |||
Revenues: | |||||
Commission earned | 9750 | ||||
Expenses: | |||||
Depreciation expense- computer equipment | 500 | ||||
Salaries expense | 3620 | ||||
Insurance expense | 133 | ||||
Rent expense | 1,800 | ||||
Office supplies expense | 400 | ||||
Telephone expenses | 750 | ||||
Repair expense | 350 | ||||
Total expenses | 7553 | ||||
Net income | $2,197 |
J. Nozomi Travel April 30, 2013 | |||||
amount($) | amount($) | ||||
Assets: | |||||
Cash | 27,000 | ||||
Accounts receivable | 1,750 | ||||
Office supplies | 600 | ||||
Prepaid insurance | 2,267 | ||||
Computer equipment | 20,000 | ||||
Accumulated depreciation | 500 | 19,500 | |||
Total assets | 51,117 | ||||
Liabilities | |||||
Salaries payable | 420 | ||||
Equity | |||||
J. Nozomi capital | 50,697 | ||||
Total liabilities and equity | $51,117 |
Explanation of Solution
Explanation:
Cash account | |||||
Date | Debit | Credit | Balance | ||
April 1 | 30,000 | 30,000 | |||
April 2 | 1800 | 28,200 | |||
April 3 | 1000 | 27,200 | |||
April 10 | 2,400 | 24,800 | |||
April 14 | 1600 | 23,200 | |||
April 24 | 8,000 | 31,200 | |||
April 28 | 1600 | 29,600 | |||
April 29 | 350 | 29,250 | |||
April 30 | 750 | 28,500 | |||
April 30 | 1500 | 27,000 |
Capital account | |||||
Date | Debit | Credit | Balance | ||
April 1 | 50,000 | 50,000 |
Computer account | |||||
Date | Debit | Credit | Balance | ||
April 1 | 20,000 | 20,000 |
Telephone expense account | |||||
Date | Debit | Credit | Balance | ||
April 30 | 750 | 750 |
Repair expense account | |||||
date | debit | Credit | Balance | ||
April 29 | 350 | 350 |
Salaries expense account | |||||
date | debit | Credit | Balance | ||
April 14 | 1600 | 1600 | |||
April 28 | 1600 | 3200 | |||
April 30 | 420 | 3620 |
Commission earned account | |||||
date | debit | Credit | Balance | ||
April 24 | 8000 | 8000 | |||
April 30 | 1750 | 9750 |
insurance account | |||||
date | debit | credit | balance | ||
April 30 | 133 | 133 |
Office supplies account | |||||
date | debit | credit | balance | ||
April 30 | 400 | 400 |
Rent expense account | |||||
date | debit | credit | balance | ||
April 2 | 1800 | 1800 |
Requirement 6:
To determine:
We have to determine the journal entries to close the temporary accounts.
Requirement 6:

Explanation of Solution
Explanation:
DATE | Journal titles | Debit($) | Credit($) |
April 30 | Commission earned | 9750 | |
Income summary | 9750 | ||
( to record closing entry) | |||
April 30 | Income summary | 7,553 | |
Depreciation expense | 500 | ||
Salaries expense | 3620 | ||
Insurance expense | 133 | ||
Rent expense | 1,800 | ||
Office supplies expense | 400 | ||
Repair expense | 350 | ||
Telephone expense | 750 | ||
( to record closing expenses) | |||
April 30 | Income summary | 2,197 | |
j. nozomi capital | 2,197 | ||
( to record closing capital) | |||
April 30 | j. nozomi capital | 1500 | |
j.nozomi withdrawals | 1500 | ||
( to record closing withdrawal) |
Ledger accounts
Cash account | |||||
Date | Debit | credit | Balance | ||
April 1 | 30,000 | 30,000 | |||
April 2 | 1800 | 28,200 | |||
April 3 | 1000 | 27,200 | |||
April 10 | 2,400 | 24,800 | |||
April 14 | 1600 | 23,200 | |||
April 24 | 8,000 | 31,200 | |||
April 28 | 1600 | 29,600 | |||
April 29 | 350 | 29,250 | |||
April 30 | 750 | 28,500 | |||
April 30 | 1500 | 27,000 |
Capital account | |||||
Date | Debit | credit | Balance | ||
April 1 | 50,000 | 50,000 | |||
April 30 | 2197 | 52197 | |||
April 30 | 1500 | 50,697 |
Computer account | |||||
Date | Debit | credit | Balance | ||
April 1 | 20,000 | 20,000 |
Telephone expense account | |||||
Date | Debit | credit | Balance | ||
April 30 | 750 | 750 | |||
April 30 | 750 | 0 |
Repair expense account | |||||
date | debit | credit | Balance | ||
April 29 | 350 | 350 | |||
April 30 | 350 | 0 |
Salaries expense account | |||||
date | debit | credit | Balance | ||
April 14 | 1600 | 1600 | |||
April 28 | 1600 | 3200 | |||
April 30 | 420 | 3620 | |||
April 30 | 3620 | 0 |
Commission earned account | |||||
date | debit | credit | Balance | ||
April 24 | 8000 | 8000 | |||
April 30 | 1750 | 9750 | |||
April 30 | 9750 | 0 |
insurance account | |||||
date | debit | credit | balance | ||
April 30 | 133 | 133 | |||
April 30 | 133 | 0 |
Office supplies account | |||||
date | debit | credit | balance | ||
April 30 | 400 | 400 | |||
April 30 | 400 | 0 |
Rent expense account | |||||
date | debit | credit | balance | ||
April 2 | 1800 | ||||
April 30 | 1800 | 0 |
Income summary account | |||||
date | debit | credit | balance | ||
April 30 | 9750 | 9750 | |||
April 30 | 7,553 | 2197 | |||
April 30 | 2197 | 0 |
Requirement 7:
To determine:
We have to determine the post closing trial balance.
Requirement 7:

Answer to Problem 1APSA
Solution:
J. Nozomi Travel April 30, 2013 | |||||
Account title | Debit($) | Credit($) | |||
101: cash | 27000 | ||||
106: accounts receivable | 1750 | ||||
124: office supplies | 600 | ||||
128: prepaid insurance | 2,267 | ||||
167: computer equipment | 20,000 | ||||
168: accumulated depreciation- computer equipment | 500 | ||||
209: salaries payable | 420 | ||||
301: j. nozomi capital | 50,697 | ||||
Total | $51617 | $ 51,617 |
Explanation of Solution
Explanation:
Cash account | |||||
Date | Debit | credit | Balance | ||
April 1 | 30,000 | 30,000 | |||
April 2 | 1800 | 28,200 | |||
April 3 | 1000 | 27,200 | |||
April 10 | 2,400 | 24,800 | |||
April 14 | 1600 | 23,200 | |||
April 24 | 8,000 | 31,200 | |||
April 28 | 1600 | 29,600 | |||
April 29 | 350 | 29,250 | |||
April 30 | 750 | 28,500 | |||
April 30 | 1500 | 27,000 |
Capital account | |||||
Date | Debit | credit | Balance | ||
April 1 | 50,000 | 50,000 | |||
April 30 | 2197 | 52197 | |||
April 30 | 1500 | 50,697 |
Computer account | |||||
Date | Debit | credit | Balance | ||
April 1 | 20,000 | 20,000 |
Want to see more full solutions like this?
Chapter 4 Solutions
WORKING PAPERS F/ FUND ACCOUNTING
- Assess the role of the Conceptual Framework in financial reporting and its influence on accounting theory and practice. Discuss how the qualitative characteristics outlined in the Conceptual Framework enhance financial reporting and contribute to decision-usefulness. Provide examplesarrow_forwardCurrent Attempt in Progress Cullumber Corporation has income from continuing operations of $464,000 for the year ended December 31, 2025. It also has the following items (before considering income taxes). 1. An unrealized loss of $128,000 on available-for-sale securities. 2. A gain of $48,000 on the discontinuance of a division (comprised of a $16,000 loss from operations and a $64,000 gain on disposal). Assume all items are subject to income taxes at a 20% tax rate. Prepare a partial income statement, beginning with income from continuing operations. Income from Continuing Operations Discontinued Operations Loss from Operations Gain from Disposal Net Income/(Loss) CULLUMBER CORPORATION Income Statement (Partial) For the Year Ended December 31, 2025 Prepare a statement of comprehensive income. Net Income/(Loss) $ CULLUMBER CORPORATION Statement of Comprehensive Income For the Year Ended December 31, 2025 = Other Comprehensive Income Unrealized Loss of Available-for-Sale Securities ✰…arrow_forwardPlease make a trial balance, adjusted trial balance, Income statement. end balance ,owners equity statement, Balance sheet , Cash flow statement ,Cash end balancearrow_forward
- Activity Based Costing - practice problem Fontillas Instrument, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 300 pressure gauges were produced, and overhead costs of $89,500 were estimated. An analysis of estimated overhead costs reveals the following activities. Activities 1. Materials handling 2. Machine setups Cost Drivers Number of requisitions Number of setups Total cost $35,000 27,500 3. Quality inspections Number of inspections 27,000 $89.500 The cost driver volume for each product was as follows: Cost Drivers Instruments Gauge Total Number of requisitions 400 600 1,000 Number of setups 200 300 500 Number of inspections 200 400 600 Insructions (a) Determine the overhead rate for each activity. (b) Assign the manufacturing overhead costs for April to the two products using activity-based costing.arrow_forwardBodhi Company has three cost pools and two doggie products (leashes and collars). The activity cost pool of ordering has the cost drive of purchase orders. The activity cost pool of assembly has a cost driver of parts. The activity cost pool of supervising has the cost driver of labor hours. The accumulated data relative to those cost drivers is as follows: Expected Use of Estimated Cost Drivers by Product Cost Drivers Overhead Leashes Collars Purchase orders $260,000 70,000 60,000 Parts 400,000 300,000 500,000 Labor hours 300,000 15,000 10,000 $960,000 Instructions: (a) Compute the activity-based overhead rates. (b) Compute the costs assigned to leashes and collars for each activity cost pool. (c) Compute the total costs assigned to each product.arrow_forwardTorre Corporation incurred the following transactions. 1. Purchased raw materials on account $46,300. 2. Raw Materials of $36,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6,800 was classified as indirect materials. 3. Factory labor costs incurred were $55,900, of which $51,000 pertained to factory wages payable and $4,900 pertained to employer payroll taxes payable. 4. Time tickets indicated that $50,000 was direct labor and $5,900 was indirect labor. 5. Overhead costs incurred on account were $80,500. 6. Manufacturing overhead was applied at the rate of 150% of direct labor cost. 7. Goods costing $88,000 were completed and transferred to finished goods. 8. Finished goods costing $75,000 to manufacture were sold on account for $103,000. Instructions Journalize the transactions.arrow_forward
- Chapter 15 Assignment of direct materials, direct labor and manufacturing overhead Stine Company uses a job order cost system. During May, a summary of source documents reveals the following. Job Number Materials Requisition Slips Labor Time Tickets 429 430 $2,500 3,500 $1,900 3,000 431 4,400 $10,400 7,600 $12,500 General use 800 1,200 $11,200 $13,700 Stine Company applies manufacturing overhead to jobs at an overhead rate of 60% of direct labor cost. Instructions Prepare summary journal entries to record (i) the requisition slips, (ii) the time tickets, (iii) the assignment of manufacturing overhead to jobs,arrow_forwardSolve accarrow_forwardSolve fastarrow_forward
- Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh Inc., Crane can use the released productive resources to generate additional income of $375,000. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Direct materials Direct labor Variable overhead 1A Fixed overhead Opportunity cost Purchase price Totals Make A Buy $ SA Net Income Increase (Decrease) $ Based on the above assumptions, indicate whether the offer should be accepted or rejected? The offerarrow_forwardThe following is a list of balances relating to Phiri Properties Ltd during 2024. The company maintains a memorandum debtors and creditors ledger in which the individual account of customers and suppliers are maintained. These were as follows: Debit balance in debtors account 01/01/2024 66,300 Credit balance in creditors account 01/01/2024 50,600 Sunday credit balance on debtors ledger Goods purchased on credit 724 257,919 Goods sold on credit Cash received from debtors Cash paid to suppliers Discount received Discount allowed Cash purchases Cash sales Bad Debts written off Interest on overdue account of customers 323,614 299,149 210,522 2,663 2,930 3,627 5,922 3,651 277 Returns outwards 2,926 Return inwards 2,805 Accounts settled by contra between debtors and creditors ledgers 1,106 Credit balances in debtors ledgers 31/12/2024. 815 Debit balances in creditors ledger 31/12/2024.698 Required: Prepare the debtors control account as at 31/12/2024. Prepare the creditors control account…arrow_forwardSolnarrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education





