Ask Question
17 September, 22:20

On April 1, Adventures Travel Agency, Inc. began operations. The following transactions were completed during the month. 1. Issued common stock for $24,000 cash. 2. Obtained a bank loan for $7,000 by issuing a note payable. 3. Paid $11,000 cash to buy equipment. 4. Paid $1,200 cash for April office rent. 5. Paid $1,450 for supplies. 6. Purchased $600 of advertising in the Daily Herald, on account. 7. Performed services for $18,000: cash of $2,000 was received from customers, and the balance of $16,000 was billed to customers on account. 8. Paid $400 cash dividend to stockholders. 9. Paid the utility bill for the month, $2,000. 10. Paid Daily Herald the amount due in transaction (6). 11. Paid $40 of interest on the bank loan obtained in transaction (2). 12. Paid employees' salaries, $6,400. 13. Received $12,000 cash from customers billed in transaction (7). 14. Paid income tax, $1,500.

+3
Answers (1)
  1. 17 September, 22:44
    0
    Date Transaction Debit Credit

    01.04 Cash $24000

    Common stock $24000

    02/04 Cash $7000

    Notes Payable $7000

    03/04 Equipment $11000

    Cash $11000

    04/04 Operating Expense $1200

    Cash $1200

    05/04 Equipment Expense $1450

    Cash $1450

    06/04 Advertising $600

    Accounts Payable $600

    07/04 Accounts Receivable $16000

    Cash $2000

    Services performed $18000

    08/04 Equity $400

    Cash $400

    09/04 Accounts Payable $2000

    Cash $2000

    10/04 Accounts Payable $600

    Cash $600

    11/04 Accounts payable $7000

    Cash $7000

    12/04 Salaries and wages Expense $6400

    Cash $6400

    13/04 Cash $12000

    Service Revenue $12000

    14/04 Tax Expense $1500

    Cash $1500
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “On April 1, Adventures Travel Agency, Inc. began operations. The following transactions were completed during the month. 1. Issued common ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers