Accounting Cycle Bayou Travel On April 1 2012 Troy Lambert c

Accounting Cycle Bayou Travel On April 1. 2012. Troy Lambert created a new travel agency called Bayou Travel. The company was organized as a corporation and has a monthly accounting period. The following transactiors occurred during the company\'s first month. April Lambert invested $32,000 cash and computer equipment worth $24,000 in the April 2 The company rented furnished office space by paying $1,550 cash for the month\'s company (April) rent. April 3 The company purchased $2,100 of office supplies for cash. April 10The company paid $3,000 cash for the premium on a 12-month insurance policy Coverage begins on April 11. April 14The company paid $2,300 cash for two-weeks\' salaries earned by employees April24 April 28 Tlected $16,000 cash on commissions from sirlines on tickets obtained for customers. The company paid another $2.300 ensh for two weeks\' salaries earned by employees. April 29 April 30 April 30 The company paid $700 cash for minor repairs to the company\'s computer The company paid $950 cash for this month\'s telephone bill. Lambert withdrew $700.00 from the business The company\'s chart of accounts follows: Commissions Earned Depreciation Expense-Computer Equip Salaries Expense Insurance Expense Rent Expense Cash Accounts Receivable Office Supplies Prepaid Insurance Computer Equipment Accumulated Depreciation-Computer Equip. Office Supplies Expense Salaries Payable T. Lambert,Capital Repairs Expense Telephone Expense Income Summary T. Lambert, Withdrawals

Solution

1 Journal entries Debit Credit 01-Apr Cash 32000 Computer equipment 24000            T. Lambert Capital 56000 02-Apr Rent expense 1550          Cash 1550 03-Apr Office supplies 2100          Cash 2100 10-Apr Prepaid insurance 3000           Cash 3000 14-Apr Salaries expense 2300            Cash 2300 24-Apr Cash 16000           Commission earned 16000 28-Apr Salaries expense 2300            Cash 2300 29-Apr Repair expense 700            Cash 700 30-Apr Telephone expense 950             Cash 950 30-Apr T .Lambert Withdrawals 700             Cash 700 2 Unadjusted Trial balance Debit Credit Cash 34400 Accounts receivable Office supplies 2100 Prepaid insurance 3000 Computer equipment 24000 Accumulated depreciation computer equipment Salaries payable T. Lambert capital 56000 T .Lambert Withdrawals 700 Commission earned 16000 Depreciation expense - computer equipment Salaries expense 4600 Insurance expense Rent expense 1550 Office supplies expense Repairs expense 700 Telephone expense 950 Total 72000 72000 3 Adjusting entries a Insurance expense 167                 Prepaid insurance 167 b Office supplies expense 1000                Office supplies 1000 c Depreciation expense - computer equipment 500             Accumulated depreciation computer equip 500 d Salaries expense 620             Salaries payable 620 e Accounts receivable 3050            Commission earned 3050 4 Adjusted Trial balance Debit Credit Cash 34400 Accounts receivable 3050 Office supplies 1100 Prepaid insurance 2833 Computer equipment 24000 Accumulated depreciation computer equipment 500 Salaries payable 620 T. Lambert capital 56000 T .Lambert Withdrawals 700 Commission earned 19050 Depreciation expense - computer equipment 500 Salaries expense 5220 Insurance expense 167 Rent expense 1550 Office supplies expense 1000 Repairs expense 700 Telephone expense 950 Total 76170 76170