companys first month worth 25000 in the company in 2 The or

company\'s first month worth $25,000 in the company in 2 The or cash 10 The 14 The paid $1,200 cash for two weeks\' salaries earned by employees 28 The 106 Equip

Solution

Date Account Debit Credit Aprl 1 Cash 49000 Aprl 1 Computer Equipment 25000 Aprl 1 Common Stock 74000 Aprl 2 Rent Expense 2500 Aprl 2 Cash 2500 Aprl 3 Office Supplies 1800 Aprl 3 Cash 1800 Aprl 10 Prepaid Insurance 2700 Aprl 10 Cash 2700 Aprl 14 Salaries Expense 1200 Aprl 14 Cash 1200 Aprl 24 Cash 23500 Aprl 24 Commission Earned 23500 Aprl 28 Salaries Expense 1200 Aprl 28 Cash 1200 Aprl 29 Repairs Expense 450 Aprl 29 Cash 450 Aprl 30 Telephone Expense 1550 Aprl 30 Cash 1550 Aprl 30 Dividends 1600 Aprl 30 Cash 1600 Adjusting Apr 30 Insurance Expense 150 Apr 30 Prepaid Insurance 150 Apr 30 Office Supplies Expense 1300 Apr 30 Office Supplies 1300 Apr 30 Depreciation Expense 500 Apr 30 Accumulated Depreciation 500 Apr 30 Salaries Expense 360 Apr 30 Salary Payable 360 Apr 30 Accounts Receivable 1900 Apr 30 Commission Earned 1900 Closing Entries: Apr 30 Commission Earned 25400 Apr 30 Income Summary 25400 (Closed Revenue Account) Apr 30 Income Summary 9210 Apr 30 Depreciation Expense 500 Apr 30 Insurance Expense 150 Apr 30 Office Supplies Expense 1300 Apr 30 Rent Expense 2500 Apr 30 Repairs Expense 450 Apr 30 Salaries Expense 2760 Apr 30 Telephone Expense 1550 (Closed Expense Account) Apr 30 Income Summary 16190 Apr 30 Retained Earning 16190 (Closed Income Summary Account) Apr 30 Retained Earning 1600 Apr 30 Dividends 1600 (Closed Dividend Account) Account Date Debit Credit Balance Accounts Receivable Apr 30 1900 1900 Accumulated Depreciation Apr 30 500 500 Cash Aprl 1 49000 49000 Aprl 10 2700 46300 Aprl 14 1200 45100 Aprl 2 2500 42600 Aprl 24 23500 66100 Aprl 28 1200 64900 Aprl 29 450 64450 Aprl 3 1800 62650 Aprl 30 3150 59500 Commission Earned Aprl 24 1900 1900 Apr 30 23500 25400 Computer Equipment Aprl 1 25000 25000 Depreciation Expense Apr 30 500 500 Insurance Expense Apr 30 150 150 Common Stock Aprl 1 74000 74000 Dividends Aprl 30 1600 1600 Office Supplies Aprl 3 1800 1800 Apr 30 1300 500 Office Supplies Expense Apr 30 1300 1300 Prepaid Insurance Aprl 10 2700 2700 Prepaid Insurance Apr 30 150 2550 Rent Expense Aprl 2 2500 2500 Repairs Expense Aprl 29 450 450 Salaries Expense Aprl 14 1200 1200 Aprl 28 1200 2400 Apr 30 360 2760 Salary Payable Apr 30 360 360 Telephone Expense Aprl 30 1550 1550 Unadjusted Trial Adjustment Adjusted Trial Income Statement Balance Sheet Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash 59500 59500 59500 Accounts Receivable 0 1900 1900 1900 Computer Equipment 25000 25000 25000 Accumulated Depreciation 500 500 500 Office Supplies 1800 1300 500 500 Prepaid Insurance 2700 150 2550 2550 Common Stock 74000 74000 74000 Dividends 1600 1600 1600 Salary Payable 360 360 360 Commission Earned 23500 1900 25400 25400 Depreciation Expense 500 500 500 Insurance Expense 150 150 150 Office Supplies Expense 1300 1300 1300 Rent Expense 2500 2500 2500 Repairs Expense 450 450 450 Salaries Expense 2400 360 2760 2760 Telephone Expense 1550 1550 1550 97500 97500 4210 4210 100260 100260 9210 25400 91050 74860 Net Income 16190 Retained Earning 16190 Total 91050 91050 Income Statement Commission Earned 25400 Depreciation Expense 500 Insurance Expense 150 Office Supplies Expense 1300 Rent Expense 2500 Repairs Expense 450 Salaries Expense 2760 Telephone Expense 1550 Total Expense 9210 Net Income 16190 Balance Sheet Assets: Current Assets: Cash 59500 Accounts Receivable 1900 Office Supplies 500 Prepaid Insurance 2550 Total Current Assets 64450 Computer Equipment 25000 Less: Accumulated Depreciation -500 24500 Total Assets 88950 Liabilities: Current Liability: Salary Payable 360 Total Liabilities 360 Equity: Common Stock 74000 Retained Earning 14590 Total Liabilities and Equity 88950 Statement of Retained Earning Beginning Balance 0 Add: Net Income 16190 Less: Dividends -1600 Ending Balance 14590 Post Closing Trial Balance: Debit Credit Cash 59500 Accounts Receivable 1900 Computer Equipment 25000 Accumulated Depreciation 500 Office Supplies 500 Prepaid Insurance 2550 Salary Payable 360 Common Stock 74000 Retained Earning 14590 Total 89450 89450