Prepare an unadjusted trial balance

Assignment Help Financial Accounting

Reference no: EM132555339

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.

Dec 1 John Trap invested $60,000 cash in the company for common stock.

2Purchase office equipment for $17,500 cash.

2The company rented furnished office space by paying $18,000 cash for the first six months (December 2015 - May 2016) rent.

3The company purchased $1,500 of office supplies on account.10The company paid $3,600 cash for the premium on a 12-month insurance policy.

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

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

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

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

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

Question 1: Create journal entries to record the transactions that occurred during the month of December.

Question 2: Prepare an unadjusted trial balance

Question 3: Create adjusting journal entries at the end of the year, December 31 based on the adjustment data.

Question 4: Prepare an adjusted trial balance.

Question 5: Prepare an income statement, statement of stockholders' equity, and classified balance sheet.

Question 6: Create closing journal entries to close all temporary accounts.

Question 7: Prepare post-closing trial balance.

Reference no: EM132555339

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