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
