User Account

All Pages

Prepare journal entries to record the transactions

Assignment Help Managerial Accounting
Reference no: EM13516978

Applying The Accounting Cycle

On April 1, 2005, Jennifer Stafford created a new travel agency, See-It-Now Travel. The following transactions occurred during the company's first month:

April 1 Stafford invested $20,000 cash and computer equipment worth $40,000 in the business.

2 Rented furnished office space by paying $1,700 cash for the first month's (April) rent.

3 Purchased $1,100 of office supplies for cash.

10 Paid $3,600 cash for the premium on a 12-month insurance policy. Coverage begins on April 11.

14 Paid $1,800 cash for two weeks' salaries earned by employees.

24 Collected $7,900 cash on commissions from airlines on tickets obtained for customers.

28 Paid another $1,800 cash for two weeks' salaries earned by employees.

29 Paid $250 cash for minor repairs to the company's computer.

30 Paid $650 cash for this month's telephone bill.

30 Stafford withdrew $1,500 cash 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 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 of one month's insurance coverage has expired.

b. At the end of the month, $700 of office supplies are still available.

c. This month's depreciation on the computer equipment is $600.

d. Employees earned $320 of unpaid and unrecorded salaries as of month-end.

e. The company earned $1,650 of commissions that are not yet billed at month-end.

5. Prepare the income statement and the statement of owner's equity for the month of April and the balance sheet at April 30, 2005.

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, $67,900

(4a) Dr. Insurance Expense, $200

(5) Net income, $1,830; Capital (4/30/2005), $60,330; Total assets, $60,650

(7) P-C trial balance totals, $61,250

Reference no: EM13516978

Questions Cloud

Explain atoms of carbon combine with 4 molecules of hydrogen : 3 atoms of carbon combine with 4 molecules of hydrogen to produce methane (CH4). 7 molecules of hydrogen and 2 molecules of nitrogen gases react to produce ammonia
Characteristics and accounting principles : Several information characteristics and accounting principles and assumptions. Match the letter of each with the appropriate phrase that states its application.
Find how much energy does this wave carry through window : A sinusoidal electromagnetic wave from a radio station passes perpendicularly through an open window that has area 0.300 m2. At the window, How much energy does this wave carry through the window
Explain what is the molarity of the acetic acid solution : A 10.1 mL sample of vinegar, which is an aqueous solution of acetic acid, HC2H3O2, requires 16.2 mL of 0.474 M NaOH to reach the end point in a titration. What is the molarity of the acetic acid solution. HC2H3O2(aq) + NaOH(aq) NaC2H3O2(aq) + H2O(l..
Prepare journal entries to record the transactions : 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.
Explain the same question has been posted twice : Please do not respond to this post as this is a duplicate post. The same question has been posted twice by mistake and there is no need for a response to this.
Difference between total debits and total credits : What type of normal balance does the Retained earnings account have-debit or credit and which type of income statement account has the same type of balance as the Retained earnings account?
Obtain the maximum kinetic energy of the electrons : The photoelectric threshold wavelength of a tungsten surface is 272. Calculate the maximum kinetic energy (in ) of the electrons
Explain an increase in the entropy of the surroundings : Which of the following processes is necessarily driven by an increase in the entropy of the surroundings

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Relevant cost of materials

What would be the relevant cost of the materials, in total, for purposes of determining a minimum acceptable price for the order for product GEE?

  Break-even in units for revenue

Assume a fixed cost for an investment in a piece of equipment of $15,000, a variable cost to produce each unit of product with the equipment at $10, and a selling price for the finished product of $25.

  Questions1a what is the purpose of an entitybwhat are the

questions1.a what is the purpose of an entity?bwhat are the rights of the stakeholders of an entity?2.a outline the

  What total incremental costs will martinez incur

For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units and what total incremental costs will Martinez incur if it increases production from 10,000 to 10,001 units?

  Find the contribution margin per unit

Sales were $780,000 for the year, variable selling and administrative expenses were $88,400, and fixed selling and administrative expenses were $170,000. There was no beginning inventory. Assume that direct labor is a variable cost.

  Maria chavez owns a catering company that serves food and

maria chavez owns a catering company that serves food and beverages at parties and business functions. chavezs business

  Describing activity-based costing

What is generally true regarding overhead allocation to high-volume products versus low-volume products under the traditional costing system?

  1the management of melchiori corporation is considering the

1.the management of melchiori corporation is considering the purchase of a machine that would cost 520000 would last

  Discussion of value added tax-federal budget process

To assist in providing new revenues to the federal government, some have proposed a value added tax (VAT) similar to those employed in the United Kingdom and Canada. What are the pros and cons of introducing this kind of national sales tax? Explai..

  Cvp analysis-academic approach

Avitar Corporation manufactures the line of computer memory expansion boards employed in microcomputers. The average selling price of its finished product is $175 per unit. The variable cost for these same units is $115. Avitar incurs fixed costs ..

  Variable costing-segment reporting

Michaels Company segments its income statement in its east and west divisions.The company's entire sales, contribution margin ratio, and net operating income are $600,000, 50%, and $50,000, respectively.

  This individual assignment is based on the terracycle

this individual assignment is based on the terracycle inc.the case includes financial and managerial accounting topics

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd