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.

Question

Business

Madalyn Baxter

22 May, 13:53

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.

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Gretchen Rosales · Answer 1

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