P4-2a applying the accounting cycle – on april 1, 2011, jennifer – Assignment Help

P4-2A Applying the accounting cycle – On April 1, 2011, Jennifer Stafford created a new travel agency, See-It-Now Travel.

P4-2A On April 1, 2011, 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 company.
2 The company rented furnished office space by paying $1,700 cash for the first month’s (April) rent.
3 The company purchased $1,100 of office supplies for cash.
10 The company paid $3,600 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 $7,900 cash on commissions from airlines on tickets obtained for customers.
28 The company paid $1,800 cash for two weeks’ salaries earned by employees.
29 The company paid $250 cash for minor repairs to the company’s computer.
30 The company paid $650 cash for this month’s telephone bill.
30 Stafford withdrew $1,500 cash from the company for personal use.

The company’s chart of accounts follows:
101 Cash       405 Commissions Earned
106 Accounts Receivable     612 Depreciation Expense — Computer Equip.
124 Office Supplies      622 Salaries Expense
128 Prepaid Insurance      637 Insurance Expense
167 Computer Equipment     640 Rent Expense
168 Accumulated Depreciation — Computer Equip.  650 Office Supplies Expense
209 Salaries Payable      684 Repairs Expense
301 J. Stafford, Capital      688 Telephone Expense
302 J. Stafford, Withdrawals     901 Income Summary

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, 2011.
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; J. Stafford, Capital (4/30/2011), $60,330; Total assets, $60,650
(7) P-C trial balance totals, $61,250

Place your order
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more