On December 1, 2015 John Trap created a new travel agency, Trap Adventures, Inc. providing exclusive adventure trips.

On December 1, 2015 John Trap created a new travel agency, Trap Adventures, Inc. providing exclusive adventure trips. The following transactions occurred during December 2015.(NOTE: There are no beginning balances – this is a new company.)

Dec 1John Trap invested $60,000 cash in the company for common stock.

2Purchase office equipment for $17,500 cash.

2The company rented furnished office space by paying $18,000 cash for the first six months (December 2015 – May 2016) rent.

3The company purchased $1,500 of office supplies on account.

10The company paid $3,600 cash for the premium on a 12-month insurance policy.

14The company paid $10,750 cash for two weeks’ salaries earned by employees.

24The company collected $54,000 cash on commissions from airlines on tickets obtained for customers.

28The company paid $12,125 cash for two weeks’ salaries earned by employees.

29The company paid $350 cash for minor repairs to the company’s computer.

30The company paid $450 cash for this month’s telephone bill.

30Dividends 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.
Final Project RequirementsUsing the spreadsheet found here and information above, complete the following:

Journal entries to record the transactions that occurred during the month of December.
Prepare an unadjusted trial balance.

 

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