On June 1, 2020, Sam Near created a new travel agency called Tours-For-Less. These activities occurred during the company's first month: June 1 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. The company purchased $2,400 of office supplies for cash. The company paid $7,200 for the premium on a one-year insurance policy. 10 14 The owner's assistant was paid $3,600 for two weeks' salary. The company collected $13,600 of commissions from airlines on tickets obtained for customers. The assistant was paid another $3,600 for two weeks' salary. The company paid the month's $3,500 phone bill. 24 28 29 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: 101 Cash 302 Sam Near, Withdrawals 106 Accounts Receivable 405 Commissions Revenue 124 Office Supplies 610 Depreciation Expense, Furniture 128 Prepaid Insurance 612 Depreciation Expense, Computer Equipment 160 Furniture 622 Salaries Expense 161 Accumulated Depreciation, Furniture 637 Insurance Expense 167 Computer Equipment 640 Rent Expense 168 Accumulated Depreciation, Computer Equipment 650 Office Supplies Expense 201 Accounts Payable 684 Repairs Expense 209 Salaries Payable 688 Telephone Expense 301 Sam Near, Capital 901 Income Summary Required 1. Set upeneh af the listed accounts. Тассоиnts 2. Prepare journal entries to record the transactions for June and post them to the accounts. use o 3. Use the following information to journalize and post the adjustments for the month: a. Two-thirds of one month's insurance coverage was consumed. b. There were $1,600 of office supplies on hand at the end of the month. c. Depreciation on the computer equipment was estimated to be $1,650 and $400 on the furniture. d. The assistant had earned $320 of unpaid and unrecorded salary. e. The company had earned $3,500 of commissions that had not yet been billed. 4. Prepare an income statement, a statement of changes in equity, and a classified balance sheet. 5. Prepare journal entries to close the temporary accounts and post them to the accounts. 6. Prepare a post-closing trial balance.

On June 1, 2020, Sam Near created a new travel agency called Tours-For-Less. These activities occurred during the company's first month: June 1 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. The company purchased $2,400 of office supplies for cash. The company paid $7,200 for the premium on a one-year insurance policy. 10 14 The owner's assistant was paid $3,600 for two weeks' salary. The company collected $13,600 of commissions from airlines on tickets obtained for customers. The assistant was paid another $3,600 for two weeks' salary. The company paid the month's $3,500 phone bill. 24 28 29 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: 101 Cash 302 Sam Near, Withdrawals 106 Accounts Receivable 405 Commissions Revenue 124 Office Supplies 610 Depreciation Expense, Furniture 128 Prepaid Insurance 612 Depreciation Expense, Computer Equipment 160 Furniture 622 Salaries Expense 161 Accumulated Depreciation, Furniture 637 Insurance Expense 167 Computer Equipment 640 Rent Expense 168 Accumulated Depreciation, Computer Equipment 650 Office Supplies Expense 201 Accounts Payable 684 Repairs Expense 209 Salaries Payable 688 Telephone Expense 301 Sam Near, Capital 901 Income Summary Required 1. Set upeneh af the listed accounts. Тассоиnts 2. Prepare journal entries to record the transactions for June and post them to the accounts. use o 3. Use the following information to journalize and post the adjustments for the month: a. Two-thirds of one month's insurance coverage was consumed. b. There were $1,600 of office supplies on hand at the end of the month. c. Depreciation on the computer equipment was estimated to be $1,650 and $400 on the furniture. d. The assistant had earned $320 of unpaid and unrecorded salary. e. The company had earned $3,500 of commissions that had not yet been billed. 4. Prepare an income statement, a statement of changes in equity, and a classified balance sheet. 5. Prepare journal entries to close the temporary accounts and post them to the accounts. 6. Prepare a post-closing trial balance.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 19EB: A business has the following transactions: A. The business is started by receiving cash from an...

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