April 1 Nozomi invested $37,000 cash and computer equipment worth $25,000...
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Accounting
April
1
Nozomi invested $37,000 cash and computer equipment worth $25,000 in the company in exchange for common stock.
2
The company rented furnished office space by paying $2,000 cash for the first months (April) rent.
3
The company purchased $1,300 of office supplies for cash.
10
The company paid $2,500 cash for the premium on a 12-month insurance policy. Coverage begins on April 11.
14
The company paid $1,800 cash for two weeks' salaries earned by employees.
24
The company collected $13,500 cash for commissions earned.
28
The company paid $1,800 cash for two weeks' salaries earned by employees.
29
The company paid $450 cash for minor repairs to the company's computer.
30
The company paid $1,450 cash for this month's telephone bill.
30
The company paid $1,700 cash in dividends.
The company's chart of accounts follows:
101
Cash
405
Commissions Earned
106
Accounts Receivable
612
Depreciation ExpenseComputer Equip.
124
Office Supplies
622
Salaries Expense
128
Prepaid Insurance
637
Insurance Expense
167
Computer Equipment
640
Rent Expense
168
Accumulated DepreciationComputer Equip.
650
Office Supplies Expense
209
Salaries Payable
684
Repairs Expense
307
Common Stock
688
Telephone Expense
318
Retained Earnings
901
Income Summary
319
Dividends
Use the following information:
Prepaid insurance of $139 has expired this month.
At the end of the month, $600 of office supplies are still available.
This months depreciation on the computer equipment is $500.
Employees earned $320 of unpaid and unrecorded salaries as of month-end.
The company earned $2,200 of commissions that are not yet billed at month-end.
Required:1.& 2. Prepare journal entries to record the transactions for April and post them to the ledger accounts in Requirement 6b. The company records prepaid and unearned items in balance sheet accounts. 3. Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30. 4. Journalize the adjusting entries for the month and prepare the adjusted trial balance. 5a. Prepare the income statement for the month of April 30. 5b. Prepare the statement of retained earnings for the month of April 30. 5c. Prepare the balance sheet at April 30. 6a. Prepare journal entries to close the temporary accounts and then post to Requirement 6b. 6b. Post the journal entries to the ledger. 7. Prepare a post-closing trial balance.
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