FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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On April 1, Jose Garcia created a new travel agency, Garcia Travel. The following transactions occurred during the company’s first month.
| April 2 | Garcia invested $38,000 cash and computer equipment worth $11,400 in the company in exchange for its common stock. |
|---|---|
| April 3 | The company rented furnished office space by paying $2,600 cash for the first month’s (April) rent. |
| April 4 | The company purchased $1,200 of office supplies for cash. |
| April 10 | The company paid $1,800 cash for a 12-month insurance policy. Coverage begins on April 11. |
| April 14 | The company paid $1,540 cash for two weeks’ salaries earned by employees. |
| April 24 | The company collected $24,000 cash for commissions revenue. |
| April 28 | The company paid $1,540 cash for two weeks’ salaries earned by employees. |
| April 29 | The company paid $650 cash for minor repairs to computer equipment. |
| April 30 | The company paid $400 cash for this month’s telephone bill. |
| April 30 | The company paid $1,700 cash in dividends. |
Information for month-end adjustments follows:
- Prepaid insurance of $100 expired this month.
- At the end of the month, $600 of office supplies are still available.
- This month’s
depreciation on computer equipment is $190. - Employees earned $616 of unpaid and unrecorded salaries as of month-end.
- The company earned $1,830 of commissions revenue that is not yet
General Journal tab - Prepare journal entries for Garcia Travel's first month of operations. Prepare any necessary adjusting and closing entries for the current month.
General Ledger tab - Each
Income Statement tab - Use the drop-downs to select the accounts properly included on the income statement. The unadjusted, adjusted or post-closing balances will appear for each account, based on your selection.
Statement of
Post-Closing tab - Use the drop-downs to indicate whether each account is included on the post-closing trial balance.
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