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Prepare Journal Entries Ledger Accounts And Trial Balance

Question

On June 1 2011 Sam Near created a new travel agency called Tours-For-Less. These activities occurred during the company's first month:

June1 Near created the new company by investing $40,000 cash, $5,000 of furniture, and computer equipment worth $60,000.

2 The company rented furnished office space by paying $3,200 rent for the first month.

3 The company purchased $2,400 of office supplies for cash.

10 The company paid $7,200 for the premium on a one-year insurance policy.

14 The owner’s assistant was paid $3,600 for two weeks' salary.

24 The company collected $13,600 of commissions from airlines on tickets obtained for customers.

28 The assistant was paid another $3,600 for two weeks' salary.

29 The company paid the month's $3,500 phone bill.

30 The company repaired its computer for $700 on account

30 The owner withdrew $2,850 cash from the business for personal use.

The company's chart of accounts included these accounts:

101 Cash

302 Sam Near, Withdrawals

106 Accounts Receivable

405 Commissions Earned

124 Office Supplies

610 Depreciation Expense, Furniture

128 Prepaid Insurance

612 Depreciation Expense, Computer Equipment

160 Furniture

 

161 Accumulated Depreciation, Furniture

622 Salaries Expense

167 Computer Equipment

637 Insurance Expense

168 Accumulated Depreciation, Computer Equipment

640 Rent Expense

 

650 Office Supplies Expense

201 Accounts Payable

684 Repairs Expense

209 Salaries Payable

688 Telephone Expense

301 Sam Near, Capital

901 Income Summary

Required

  1. Prepare journal entries to record the transactions for June and post them to the accounts.
  2. Use the following information to journalize and post the adjustments for the month:
  3. Two-thirds of one month's insurance coverage was consumed.
  4. There were $1,600 of office supplies on hand at the end of the month.
  5. Depreciation on the computer equipment was estimated to be $1,650 and $400 on the furniture.
  6. The assistant had earned $320 of unpaid and unrecorded salary.
  7. The company had earned $3,500 of commissions that had not yet been billed.
  8. Prepare an income statement, a statement of changes in equity, and a classified balance sheet.
  9. Prepare journal entries to close the temporary accounts and post them to the accounts.
  10. Prepare a post-closing trial balance.

 

Summary

The question belongs to Accounting and it discusses about preparing journal entries, posting the entries into specific accounts and preparing a trial balance for given details.

Total Word Count NA

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