Answer:
1) JOURNAL ENTRY
April 01 Debit Bank $30,000 Debit Equipment $20,000 Credit Capital Account $50,000
April 02 Debit Rent Expense $1,800 Credit Bank $1,800
April 03 Debit Office supplies Account $1,000 Credit Bank $1,000
April 10 Debit Prepaid Insurance $2,400 Credit Bank $2,400
April 14 Debit Salaries Expense $1,600 Credit Bank $1,600
April 24 Debit Bank $8,000 Credit Commission $8,000
April 28 Debit Salaries Expense $1,600 Credit Bank $1,600
April 29 Debit Repairs $350 Credit Bank $350
April 30 Debit Telephone Expense $750 Credit Bank $750
Debit Drawings $1,500 Credit Bank $1,500
2) GENERAL LEDGER ACCOUNTS
DR 101 Cash CR
01 Capital 30,000 02 Rent expense 1,800
24 Commission 8000 03 Office supplies 1,000
10 Insurance 2,400
14 Salaries 1,600
28 Salaries 1,600
29 Repairs 350
30 Telephone 750
Drawings 1,500
Balance C/D 27,000
38,000 38,000
124 Office Supplies
03 Bank 1,000
128 Prepaid Insurance
10 Bank 2,400
167 Computer Equipment
01 Capital 20,000
301 Capital
balance c/d 50,000 01 Bank 30,000
Equipment 20,000
50,000 50,000
302 Drawings
30 Bank 1,500
405 Commission Earned
24 Bank 8,000
622 Salaries Expense
14 Bank 1,600
28 Bank 1,600
640 Rent Expense
02 Bank 1,800
684 Repairs
29 Bank 350
688 Telephone Expense
30 Bank 750
3) UNADJUSTED TRIAL BALANCE DR CR
Balance sheet section
Capital 50,000
Drawing 1,500
Cash 27,000
Office supplies 1,000
Prepaid expense 2,400
Computer Equipment 20,000
Nominal Accounts section
Commission Earned 8,000
Salaries expense 3,200
Rent Expense 1,800
Repairs Expense 350
Telephone Expense 750
TOTALS 58,000 58,000
4) ADJUSTING ENTRIES
31 April
Debit Insurance expense $133 Credit Prepaid insurance $133
Debit office supplies expense $400 Credit Office supplies account $400
Debit Depreciation $500 Credit Accumulated depreciation $500
Debit Salaries expense $420 Credit Salaries Payable $420
Debit Accounts Receivable $1,750 Credit Commission Earned $1,750
ADJUSTED TRIAL BALANCE DR CR
Balance sheet section
Capital 50,000
Drawing 1,500
Cash 27,000
Accounts Receivable 1,750
Office supplies (1000-400) 600
Prepaid expense (2,400 -133) 2,267
Computer Equipment 20,000
Accumulated Depreciation on equipment 500
Salaries Payable 420
Nominal Accounts section
Commission Earned (8,000 + 1,750) 9750
Depreciation expense 500
Salaries expense (3,200 +420) 3,620
Insurance expense 133
Rent Expense 1,800
Office Supplies Expense 400
Repairs Expense 350
Telephone Expense 750
TOTALS 60,670 60,670
5 a) INCOME STATEMENT FOR APRIL
Commission earned $9,750
minus total Expenses - $7,553
Depreciation 500
Salaries expense 3,620
Insurance Expense 133
Rent Expense 1,800
Office Supplies Expense 400
Repairs Expense 350
Telephone Expense 750
Net Income $2,197
b) Statement of Owners Equity
opening Balance 50,000
Add Net income 2,197
minus Drawings - 1,500
Closing Balance = $50,697
c) Balance Sheet at 30 April 2017
Asset
Non_Current Asset $19,500
Equipment at Carrying Value (20,000-500) $19,500
Current Asset $31,617
Accounts receivable $1,750
Office supplies (1000-400) $ 600
Prepaid expense (2,400 -133) $2,267
Cash $27,000
Total Assets $51,117
Equity and Liabilities
Equity $50,697
Liabilities
Current Liabilities $420
Salaries Payable $420
Total Equity and Liabilities $51,117
6 a) JOURNAL ENTRIES
Debit Capital Account $1,500 Credit Drawings $1,500
Debit Commission earned $9,750 Credit Income summary account $9,750
Debit Income Summary Account $500 Credit Depreciation $500
Debit Income summary account $3,620 Credit Salaries Expense $3,620
Debit Income summary Account $133 Credit Insurance Expense $133
Debit Income summary Account $1,800 Credit Rent Expense $1,800
Debit Income Summary Account $400 Credit Office supplies Expense $400
Debit Income Summary Account $350 Credit Repairs expense $350
Debit Income Summary Account $750 Credit Telephone expense $750
Debit Income Summary Account $2,197 Credit Capital Account $2,197
b) Closing Temporary Accounts
302 Drawings
30 bank 1,500 Capital Account 1,500
405 Commission Earned
Income summary account $9,750 24 Bank 8,000
30 Accounts Receivable 1750
612 Depreciation
30 Accumulated depreciation $500 income summary account $500
622 Salaries Expense
Bank 3,200 Income summary account $3,620
Salaries payable 420
637 Insurance Expense
Prepaid expense $133 Income summary account $133
640 Rent Expense
Bank $1,800 Income summary Account $1,800
650 Office Supplies Expense
Office supplies Account $400 Income summary Account $400
684 Repairs Expense
Bank $350 Income summary Account $350
688 Telephone Expense
Bank $750 Income Summary Account $750
901 INCOME SUMMARY ACCOUNT
Depreciation $500 Commission Earned $9,750
Salaries Expense $3,620
Insurance Expense $133
Rent Expense $1,800
Office supplies $400
Repairs Expense $350
Telephone $750
Capital Account $2,197
Total $9,750 $9,750
7) POST CLOSING TRIAL BALANCE DR CR
Balance sheet section
Capital Account 50,697
Cash 27,000
Accounts Receivable 1,750
Office supplies 600
Prepaid expense 2,267
Equipment at Carrying Value 19,500
Salaries Payable 420
TOTAL 51,117 51,117
Explanation:
