Question - On December 1, 2015 John Trap created a new travel agency, Trap Adventures, Inc. providing exclusive adventure trips. The following transactions occurred during December. (NOTE: There are no beginning balances -this is a new company.)
Dec 1 - John Trap invested $60,000 cash in the company for common stock.
Dec 2 - Purchase office equipment for $17,500 cash.
Dec 2 - The Company rented furnished office space by paying $18,000 cash for the first six months (December 2015 - May 2016) rent.
Dec 3 - The company purchased $1,500 of office supplies on account.
Dec 10 - The company paid $3,600 cash for the premium on a 12-month insurance policy.
Dec 14 - The company paid $10,750 cash for two weeks' salaries earned by employees.
Dec 24 - The company collected $54,000 cash on commissions from airlines on tickets obtained for customers.
Dec 28 - The company paid $12,125 cash for two weeks' salaries earned by employees.
Dec 29 - The company paid $350 cash for minor repairs to the company's computer.
Dec 30 - The company paid $450 cash for this month's telephone bill.
Dec 30 - Dividends of $3,000 cash were paid.
Adjustment Data:
- One month's insurance coverage has expired.
- The company occupied the office space for the month of December.
- At the end of the month, $600 of office supplies are still available.
- This month's depreciation on the computer equipment is $325.
- Employees earned $525 of unpaid and unrecorded salaries as of month-end.
Project Requirements -
Using the spreadsheet and information above, complete the following:
1. Journal entries to record the transactions that occurred during the month of December.
2. Prepare an unadjusted trial balance.
Attachment:- Template.rar