ACCOUNTING

Final Project Data

On December 1, 2015 John Trap created a new travel agency, Trap Adventures, Inc. providing exclusive adventure

trips.

The following transactions occurred during December 2015.

(NOTE: There

are no beginning balances

–

this is a new company.)

Dec

1

John Trap invested $60,000 cash in the company for common stock.

2

Purchase office equipment for $17,500 cash.

2

The company rented furnished office space by paying $18,000 cash for the first six

months (December

2015

-

May 2016) rent.

3

The company purchased $1,500 of office supplies on account.

10

The company paid $3,600 cash for the premium on a 12

-

month insurance policy.

14

The company paid $10,750 cash for two weeks' salaries earned by

employees.

24

The company collected $54,000 cash on commissions from airlines on tickets obtained for customers.

28

The company paid $12,125 cash for two weeks' salaries earned by employees.

29

The company paid $350 cash for minor repairs to the company

's computer.

30

The company paid $450 cash for this month's telephone bill.

30

Dividends of $3,000 cash were paid.

Adjustment Data:

·

One month's insurance coverage has expired.

·

The company occupied the office space for the month of December.

·

At the end

of the month, $600 of office supplies are still available.

·

This month's depreciation on the computer equipment is $325.

·

Employees earned $525 of unpaid and unrecorded salaries as of month

-

end.

Final Project Requirements

Using the attached spreadsheet

and

information above, complete the following:

1.

Journal entries to record the transactions that occurred during the month of December.

2.

Prepare an unadjusted trial balance.

Final Project Data

On December 1, 2015 John Trap created a new travel agency, Trap Adventures, Inc. providing exclusive adventure

trips. The following transactions occurred during December 2015.

(NOTE: There are no beginning balances – this is a new company.)

Dec

1

John Trap invested $60,000 cash in the company for common stock.

2 Purchase office equipment for $17,500 cash.

2

The company rented furnished office space by paying $18,000 cash for the first six months (December

2015 - May 2016) rent.

3 The company purchased $1,500 of office supplies on account.

10 The company paid $3,600 cash for the premium on a 12-month insurance policy.

14 The company paid $10,750 cash for two weeks' salaries earned by employees.

24 The company collected $54,000 cash on commissions from airlines on tickets obtained for customers.

28 The company paid $12,125 cash for two weeks' salaries earned by employees.

29 The company paid $350 cash for minor repairs to the company's computer.

30 The company paid $450 cash for this month's telephone bill.

30 Dividends of $3,000 cash were paid.

Adjustment Data:

 One month's insurance coverage has expired.

 The company occupied the office space for the month of December.

 At the end of the month, $600 of office supplies are still available.

 This month's depreciation on the computer equipment is $325.

 Employees earned $525 of unpaid and unrecorded salaries as of month-end.

Final Project Requirements

Using the attached spreadsheet and information above, complete the following:

1. Journal entries to record the transactions that occurred during the month of December.

2. Prepare an unadjusted trial balance.