P06 Practice Set

Given Data P06 Practice Set:   

ADVENTURE TRAVEL   

Apr 1 Nozomi invested cash  $30,000  

1 Nozomi invested computer equipment  $20,000  

2 Paid first month's rent  $1,800  

3 Purchased office supplies  $1,000  

10 Paid annual insurance premium  $2,400  

14 Paid salaries  $1,600  

24 Collected commissions earned  $8,000  

26 Paid salaries  $1,600  

27 Paid for computer repair  $350  

27 Paid telephone bill  $750  

28 Nozomi withdrew cash for personal use  $1,500  

 Chart of Accounts  

101 Cash  

106 Accounts Receivable  

124 Office Supplies  

128 Prepaid Insurance  

167 Computer Equipment  

168 Accumulated Depreciation, Computer Equipment  

209 Salaries Payable  

301 J. Nozomi, Capital  

302 J. Nozomi, Withdrawals  

405 Commissions Earned  

612 Depreciation, Computer Equipment  

622 Salaries Expense  

637 Insurance Expense  

640 Rent Expense  

650 Office Supplies Expense  

684 Repairs Expense  

688 Telephone Expense  

901 Income Summary  

Additional information for adjusting entries:   

Apr 30 2/3 of a month's insurance expired  

 Office supplies on hand  $600  

 Depreciation on computer  $500  

 Unpaid salaries  $420  

Check figures:   

(3) Unadjusted trial balance totals   $58,000  

(4a) Debit Insurance Expense   $133  

(5) Net income   $447  

     Capital (4/30/2010)   $48,947  

     Total assets   $49,367  

(7) Post-closing trial balance totals   $49,867  

ADVENTURE TRAVEL

General Journal

Date Account Titles Acct. No. Debit Credit

Transactions for April (Part 2):    

Transactions for April (Part 2):  

Apr 1 Cash 101

 Computer Equipment 167

   J. Nozomi, Capital 301

2 Rent Expense 640

   Cash 101

3 Office Supplies 124

   Cash 101

10 Prepaid Insurance 128

   Cash 101

14 Salaries Expense 622

   Cash 101

24 Cash 101

   Commissions Earned 405

26 Salaries Expense 622

   Cash 101

27 Repairs Expense 684

   Cash 101

27 Telephone Expense 688

   Cash 101

28 J. Nozomi, Withdrawals 302

   Cash 101

Adjusting Entries (Part 4):  

Apr 30 Insurance Expense 637

   Prepaid Insurance 128

30 Office Supplies Expense 650

   Office Supplies 124

30 Depreciation Expense, Computer Equipment 612

   Accumulated Depreciation, Computer Equipment 168

30 Salaries Expense 622

   Salaries Payable 209

Closing Entries (Part 6)  

Apr 30 Commissions Earned 405

    Income Summary 901

30 Income Summary 901

   Depreciation Expense, Computer Equipment 612

   Salaries Expense 622

   Insurance Expense 637

   Rent Expense 640

   Office Supplies Expense 650

   Repairs Expense 684

   Telephone Expense 688

30 Income Summary 901

   J. Nozomi, Capital 301

30 J. Nozomi, Capital 301

   J. Nozomi, Withdrawals 302

ADVENTURE TRAVEL

Unadjusted Trial Balance

April 30, 2010

Account Titles

Cash

Accounts receivable

Office supplies

Prepaid insurance

Computer equipment

Accumulated depreciation, computer equipment

Salaries payable

J. Nozomi, Capital

J. Nozomi, Withdrawals

Commissions earned

Depreciation, computer equipment

Salaries expense

Insurance expense

Rent expense

Office supplies expense

Repairs expense

Telephone expense

  Totals

ADVENTURE TRAVEL

General Ledger

Cash    Account No. 101

Date Explanation   Debit Credit Balance

Apr 1 Investment by Owner

2 Payment of rent in cash

3 Purchased supplies for cash

10 Payment of insurance in cash

14 Payment of salaries in cash

24 Collected commissions in cash

26 Payment of salaries in cash

27 Paid for computer repair in cash

27 Paid for telephone in cash

28 Withdrawal by owner

Office Supplies  

Date Explanation  

Apr 3 Purchased supplies for cash

30 Adjusting

Prepaid Insurance  

Date Explanation  

Apr 10 Cash payment for insurance coverage

30 Adjusting

Computer Equipment  

Date Explanation  

Apr 1 Cash investment for computer equipment

Accumulated Depreciation,  

Computer Equipment  

Date Explanation  

Apr 30 Adjusting

Salaries Payable  

Date Explanation  

Apr 30 Adjusting

J. Nozomi, Capital  

Date Explanation  

Apr 1 Investment by Owner

30 Closing

30 Closing

J. Nozomi, Withdrawals  

Date Explanation  

Apr 30  

30 Closing

Commissions Earned  

Date Explanation  

Apr 24 Collected commissions in cash

30 Closing

Depreciation Expense,  

Computer equipment  

Date Explanation  

Apr 30 Adjusting

30 Closing

Salaries Expense  

Date Explanation  

Apr 14 Payment of salaries in cash

26 Payment of salaries in cash

30 Adjusting

30 Closing

Insurance Expense  

Date Explanation  

Apr 30 Adjusting

30 Closing

Rent Expense  

Date Explanation  

Apr 2 Payment of rent in cash

30 Closing

Office Supplies Expense  

Date Explanation  

Apr 30  

30 Closing

Repairs Expense  

Date Explanation  

Apr 27 Paid for computer repair in cash

30 Closing

Telephone Expense  

Date Explanation  

Apr 27 Paid for telephone in cash

30 Closing

Income Summary  

Date Explanation  

Apr 30 Closing

30 Closing

30 Closing