On April 1, 2015,
Jiro Nozomi created a new travel agency, Adventure Travel. The following
transactions occurred during the company’s first month.
April 1 Nozomi
invested $30,000 cash and computer equipment worth $20,000 in the company.
2 The company rented
furnished office space by paying $1,800 cash for the first month’s (April)
rent.
3 The company
purchased $1,000 of office supplies for cash.
10 The company paid
$2,400 cash for the premium on a 12-month insurance policy. Coverage begins on
April 11.
14 The company paid
$1,600 cash for two weeks’ salaries earned by employees.
24 The company
collected $8,000 cash on commissions from airlines on tickets obtained for customers.
28 The company paid
$1,600 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
$750 cash for this month’s telephone bill.
30 Nozomi withdrew
$1,500 cash from the company for personal use.
The company’s chart
of accounts follows:
101 Cash 405
Commission Earned
106 Accounts receivable 612 Depreciation Exp
(Computer)
124 Office Supplies 622 Salaries
Expense
128 Prepaid Insurance 637 Insurance Expense
167 Computer Equipment 640 Rent Expense
168 Accumulated Depreciation(Computer) 650
Office Supplies Expense
209 Salaries payable 684 Repair
Expense
301 J. Nazami Capital 688 Telephone
Expense
302 J. Nazami withdrawals 901
Income Summary
Required
1. Use the balance
column format to set up each ledger account listed in its chart of accounts.
Part 1
Ledger as of April 30
Cash Acct.
No. 101
Date Explanation PR Debit Credit Balance
April 1 30,000
30,000
2 1,800
28,200
3 1,000
27,200
10 2,400 24,800
14 1,600 23,200
24 8,000 31,200
28 1,600 29,600
29 350 29,250
30 750 28,500
30 1,500 27,000
Accounts Receivable Acct. No. 106
Date Explanation PR Debit Credit Balance
April 30 Adjusting 1,750 1,750
Office Supplies Acct. No. 124
Date Explanation PR Debit Credit Balance
April 3 1,000
1,000
30 Adjusting 400 600
Prepaid Insurance Acct. No. 128
Date Explanation PR Debit Credit Balance
April 10 2,400 2,400
30 Adjusting 133 2,267
Computer
Equipment Acct. No. 167
Date Explanation PR Debit Credit Balance
April 1 20,000
20,000
Accumulated Depreciation–Computer
Equipment Acct. No. 168
Date Explanation PR Debit Credit Balance
April 30
Adjusting 500 500
Salaries
Payable Acct. No.
209
Date Explanation PR Debit Credit Balance
April 30 Adjusting 420 420
J.
Nozomi, Capital Acct.
No. 301
Date Explanation PR Debit Credit Balance
April 1 50,000 50,000
30 Closing 2,197 52,197
30 Closing 1,500 50,697
J.
Nozomi, Withdrawals Acct.
No. 302
Date Explanation PR Debit Credit Balance
April 30 1,500 1,500
30 Closing 1,500
0
Commissions
Earned Acct. No. 405
Date Explanation PR Debit Credit Balance
April 24 8,000 8,000
30 Adjusting 1,750 9,750
30 Closing 9,750 0
Depreciation
Expense–Computer Equipment Acct. No.
612
Date Explanation PR Debit Credit Balance
April 30 Adjusting 500 500
30 Closing 500 0
Salaries
Expense Acct. No.
622
Date Explanation PR Debit Credit Balance
April 14 1,600 1,600
28 1,600 3,200
30 Adjusting 420
3,620
30 Closing 3,620 0
Insurance
Expense Acct. No. 637
Date Explanation PR Debit Credit Balance
April 30
Adjusting 133 133
30
Closing 133 0
Rent
Expense Acct. No.
640
Date Explanation PR Debit Credit Balance
April 2 1,800 1,800
30 Closing 1,800 0
Office
Supplies Expense Acct. No.
650
Date Explanation PR Debit Credit Balance
April 30
Adjusting 400 400
30 Closing 400 0
Repairs Expense Acct. No. 684
Date Explanation PR Debit Credit Balance
April 29 350 350
30 Closing 350 0
Telephone
Expense Acct.
No. 688
Date Explanation PR Debit Credit Balance
April 30 750 750
30 Closing 750 0
Income
Summary Acct. No. 901
Date Explanation PR Debit Credit Balance
April 30
Closing 9,750 9,750
30
Closing 7,553 2,197
30 Closing 2,197 0
