Trap Adventures, Inc - Journal to Fianancial Statements

   

Final Project Overview
 

Throughout this course, you have learned various components of accounting.  These components work hand-in-hand to create the accounting cycle – the process of recording, summarizing and reporting transactions.  The final project will provide you the opportunity to apply the skills covered in this course through the completion of the accounting cycle.  In addition, you will be able to demonstrate your understanding through analysis of the completed information.  This project will be completed in two parts in Units 3 and 5.
 

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 spreadsheet attached 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.