Posts tagged postclosing
Can someone help me with a balance sheet and post-closing trial balance?
1Question: Can someone help me with a balance sheet and post-closing trial balance?
On April 1, 2009, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company’s first month:
April 1
Nozomi invested $ 32,000 cash and computer equipment worth $ 26,000 in the business in exchange for its common stock.
2
Rented furnished office space by paying $ 1,300 cash for the first month’s (April) rent.
3
Purchased $ 2,500 of office supplies for cash.
10
Paid $ 2,500 cash for the premium on a 12-month insurance policy. Coverage begins on April 11.
14
Paid $ 2,300 cash for two weeks’ salaries earned by employees.
24
Collected $ 16,000 cash on commissions from airlines on tickets obtained for customers.
28
Paid another $ 2,500 cash for two weeks’ salaries earned by employees.
29
Paid $ 750 cash for minor repairs to the company’s computer.
30
Paid $ 550 cash for this month’s telephone bill.
30
Paid $ 1,200 cash for dividends.
The company’s chart of accounts follows:
101
Cash
405
Commissions Earned
106
Accounts Receivable
612
Depreciation Expense—Computer Equip.
124
Office Supplies
622
Salaries Expense
128
Prepaid Insurance
637
Insurance Expense
167
Computer Equipment
640
Rent Expense
168
Accumulated Depreciation—Computer Equip.
650
Office Supplies Expense
209
Salaries Payable
684
Repairs Expense
307
Common Stock
688
Telephone Expense
318
Retained Earnings
901
Income Summary
319
Dividends
adventure travel insurance
Best answer:
Answer by dvdclarke
do some calculation