90.2K

Verified Solution

Link Copied!

Answer this question and all its steps. I already completed step 1 so don't worry that I did not include it.

Problem 3-5A (Algo) Applying the accounting cycle LO P1, P3, P4, P5, P6

Problem 3-5A (Algo) Applying the accounting cycle LO P1, P3, P4, P5, P6 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 $40,000 cash and computer equipment worth $35,000 in the company in exchange for its common stock. April 3 The company rented furnished office space by paying $2,600 cash for the first month's (April) rent. April 4 The company purchased $1,200 of office supplies for cash. April 10 The company paid $2,340 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 $11,500 cash for commissions revenue. April 28 The company paid $1,600 cash for two weeks' salaries earned by employees. April 29 The company paid $250 cash for minor repairs to computer equipment. April 30 The company paid $750 cash for this month's telephone bill. April 30 The company paid $1,510 cash in dividends. The company's chart of accounts follows: Use the following information to prepare adjusting entries: a. Prepaid insurance of $130 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 $400. d. Employees earned $350 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. 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. Using account balances from Requirement 6B, prepare an unadjusted trial balance as of April 30 . Journalize the adjusting entries for the month, and then post to the ledger on Requirement 6BGL tab, using April 30 Adjusted as the date. (Do not round intermediate calculations and round the final answers to nearest whole number.) Journal entry worksheet 5 Prepaid insurance of $130 expired this month. Record the required adjusting entry, if any. Note: Enter debits before credits. 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. (Do not round intermediate calculations and round the final answers to nearest whole number.) Journal entry worksheet 5 At the end of the month, $600 of office supplies are still available. Record the required adjusting entry, if any. Note: Enter debits before credits. ournalize the adjusting entries for the month, and then post to the ledger on Requirement 6BGL tab, using April 30 Adjusted as the date. (Do not round intermediate calculations and round the final answers to nearest whole number.) Journal entry worksheet This month's depreciation on computer equipment is $400. Record the required adjusting entry, if any. Note: Enter debits before credits. ournalize the adjusting entries for the month, and then post to the ledger on Requirement 6BGL tab, using April 30 Adjusted as the ate. (Do not round intermediate calculations and round the final answers to nearest whole number.) Journal entry worksheet Employees earned $350 of unpaid and unrecorded salaries as of month-end. Record the required adjusting entry, if any. Note: Enter debits before credits. Journalize the adjusting entries for the month, and then post to the ledger on Requirement 6BGL tab, using April 30 Adjusted as the date. (Do not round intermediate calculations and round the final answers to nearest whole number.) Journal entry worksheet 12 The company earned $1,800 of commissions revenue that is not yet recorded at month-end. Record the required adjusting entry, if any. Note: Enter debits before credits. \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline Req 1 and 2 & Req3 & Req4 & Req5A & Req5B & Req5C & Req5D & Req6A \\ \hline \end{tabular} Using adjusted account balances from Requirement 6BGL tab, prepare an adjusted trial balance as of April 30. Prepare the income statement for the month of April 30. Prepare the statement of retained earnings for the month of April 30. Prepare the balance sheet at April 30 . Journal entry worksheet 4 Record the entry to close the revenue account(s). Note: Enter debits before credits. Journal entry worksheet Record the entry to close the expense account(s). Note: Enter debits before credits. Journal entry worksheet Record the entry to close the income summary. Note: Enter debits before credits. Prepare journal entries to close the temporary accounts and then post to Requirement 6BGL tab, using April 30 Close as the date. Journal entry worksheet Record the entry to close the dividends account. Note: Enter debits before credits. Prepare a post-closing trial balance

Answer & Explanation Solved by verified expert

See Answer