Question

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.

Answer 1

Answer:

Explanation:

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

               

Answer 2

Journal entries are the entries that let the companies or firms record the daily transaction in the book in order to maintain the record of the transactions avoiding chaos in the calculation of the deficit and surplus.

A journal entry is an act of reporting or staying abreast of any economic or quasi-activity. An accounting journal records transactions and reflects an industry's card payment amounts. Each recording in the journal entry can be either a negative or a positive.

The journal entries have been attached below.

To know more about the journal entries, refer to the link below:

https://brainly.com/question/24640307