Reference no: EM13824719
Question-
On June 1 2011 Sam Near created a new travel agency called Tours-For-Less. These activities occurred during the company's first month:
June1 Near created the new company by investing $40,000 cash, $5,000 of furniture, and computer equipment worth $60,000.
2 The company rented furnished office space by paying $3,200 rent for the first month.
3 The company purchased $2,400 of office supplies for cash.
10 The company paid $7,200 for the premium on a one-year insurance policy.
14 The owner's assistant was paid $3,600 for two weeks' salary.
24 The company collected $13,600 of commissions from airlines on tickets obtained for customers.
28 The assistant was paid another $3,600 for two weeks' salary.
29 The company paid the month's $3,500 phone bill.
30 The company repaired its computer for $700 on account
30 The owner withdrew $2,850 cash from the business for personal use.
The company's chart of accounts included these accounts:
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101 Cash
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302 Sam Near, Withdrawals
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106 Accounts Receivable
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405 Commissions Earned
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124 Office Supplies
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610 Depreciation Expense, Furniture
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128 Prepaid Insurance
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612 Depreciation Expense, Computer Equipment
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160 Furniture
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161 Accumulated Depreciation, Furniture
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622 Salaries Expense
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167 Computer Equipment
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637 Insurance Expense
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168 Accumulated Depreciation, Computer Equipment
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640 Rent Expense
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650 Office Supplies Expense
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201 Accounts Payable
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684 Repairs Expense
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209 Salaries Payable
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688 Telephone Expense
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301 Sam Near, Capital
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901 Income Summary
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Required
1. Prepare journal entries to record the transactions for June and post them to the accounts.
2. Use the following information to journalize and post the adjustments for the month:
3. Two-thirds of one month's insurance coverage was consumed.
4. There were $1,600 of office supplies on hand at the end of the month.
5. Depreciation on the computer equipment was estimated to be $1,650 and $400 on the furniture.
6. The assistant had earned $320 of unpaid and unrecorded salary.
7. The company had earned $3,500 of commissions that had not yet been billed.
8. Prepare an income statement, a statement of changes in equity, and a classified balance sheet.
9. Prepare journal entries to close the temporary accounts and post them to the accounts.
10. Prepare a post-closing trial balance.
Additional information-
The question relates to Accounting and it discusses about preparing journal entries, posting the entries into particular accounts and preparing a trial balance for given details.