On April 1, Anita Strods created a new travel agency, Strods Travel. The following transactions occurred during the company's first month. April 2 Strods invested $46,000 cash and computer equipnent worth $23,400 in the company. April 3 The company rented furnished office space by paying $2,200 cash for the first month's (April) rent. April 4 The company purchased $2,400 of office supplies for cash. April 10 The company paid $2,520 cash for a 12-month insurance policy. Coverage begins on April 11. April 14 The company paid $1,820 cash for tvo veeks salaries earned by employees. April 24 The company ĉollected $16,000 cash for cormissions revenue. April 28 The company paid $1,820 cash for two veeks' salaries earned by employees. April 29 The company paid $500 cash for minor repalrs to computer equipment. April 30 The company paid $750 cash for this month's telephone bill. April 30 Strods vithdrev $1,900 cash from the company for personal use. Information for month-end adjustments follows: a. Prepaid insurance of $140 expired this month. b. At the end of the month, $1,050 of office supplies are still available. c. This month's depreciation on computer equipment is $390. d. Employees earned $728 of unpaid and unrecorded salaries as of month-end. e. The company earned $1,830 of commissions revenue that is not yet recorded at month-end.
On April 1, Anita Strods created a new travel agency, Strods Travel. The following transactions occurred during the company's first month. April 2 Strods invested $46,000 cash and computer equipnent worth $23,400 in the company. April 3 The company rented furnished office space by paying $2,200 cash for the first month's (April) rent. April 4 The company purchased $2,400 of office supplies for cash. April 10 The company paid $2,520 cash for a 12-month insurance policy. Coverage begins on April 11. April 14 The company paid $1,820 cash for tvo veeks salaries earned by employees. April 24 The company ĉollected $16,000 cash for cormissions revenue. April 28 The company paid $1,820 cash for two veeks' salaries earned by employees. April 29 The company paid $500 cash for minor repalrs to computer equipment. April 30 The company paid $750 cash for this month's telephone bill. April 30 Strods vithdrev $1,900 cash from the company for personal use. Information for month-end adjustments follows: a. Prepaid insurance of $140 expired this month. b. At the end of the month, $1,050 of office supplies are still available. c. This month's depreciation on computer equipment is $390. d. Employees earned $728 of unpaid and unrecorded salaries as of month-end. e. The company earned $1,830 of commissions revenue that is not yet recorded at month-end.
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 13EB: Marc Associates employs Janet Evanovich at its law firm. Her gross income for June is $7,500....
Related questions
Topic Video
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College