Case StudyCaseAccounting CycleJR World Expeditions is a travel agency that offers international and local travel packages. The company is owned and operated by James Robertson. The closing...

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Case Study CaseAccounting Cycle JR World Expeditions is a travel agency that offers international and local travel packages. The company is owned and operated by James Robertson. The closing balances at the end of August 2023 and the chart of accounts are shown below. JR World ExpeditionsJamesRobertsonAugust 01, 2023September 01, 2023 JR World Expeditions Balance Sheet As at August 31, 2023 Assets Liabilities Cash$31,250Accounts Payable$14,500 Accounts Receivable $10,800Unearned Revenue$11,000 Prepaid Insurance$0Bank Loan$32,400 Equipment$35,000Note Payable Accumulated Depreciation-$9,000 Total Liabilities$57,900 Robertson, Capital$10,150 Total Assets$68,050 Total Liabilities & Owners' Equity$68,050 Account DescriptionAccount #Account DescriptionAccount # ASSETSREVENUE Cash101Service Revenue400 Accounts Receivable 105EXPENSES Prepaid Insurance110Advertising Expense500 Equipment120Depreciation Expense510 Accumulated Depreciation125Insurance Expense515 LIABILITIESInterest Expense520 Accounts Payable200Salaries Expense545 Interest Payable205Telephone Expense550 Salary Payable210Travel Expense555 Unearned Revenue215Rent Expense560 Bank Loan220 Note Payable225 OWNER'S EQUITY Robertson, Capital300 Robertson, Withdrawals310 Income Summary315 For the month of September 2023, JR World Expeditions had the following transactions: Sep 1James invested $12,600 cash and equipment valued at $9,900 into the business.$12,6009900 Sep 1Prepaid $11,184 for insurance for one year.$11,184 Sep 1Paid $3,250 cash for September's rent.$3,250 Sep 2Provided travel services to group of travellers; they paid $46,400 now and will pay $9,280 later.$46,4009280 Sep 2Purchase equipment by signing a Note Payable for $15,000, due in 3 years plus accrued interest at 10%.$15,0003 0.10 Sep 5Recorded travel expenses for $16,820 to be paid next month.$16,820 Sep 15Paid $11,600 cash to reduce the balance of accounts payable.$11,600 Sep 18Received $5,400 cash from customers for the travel services provided last month.$5,400 Sep 20Received a telephone bill for $720 which will be paid next month.$720 Sep 23Paid $8,460 cash for employee's salaries.$8,460 Sep 26Received $26,840 cash in advance from travellers for travel services to be provided next month.$26,840 Sep 28Paid $4,650 advertising expense for the promotion of the travel and tours in the month of September.$4,650 Sep 29The owner withdrew $5,710 cash for personal use.$5,710 Sep 30Paid $891 cash for the bank loan which included $675 principle and $216 interest. The loan is due in 4 years with monthly repayments of $675 principle plus interest at 8% on outstanding balance.$675$216 4.00 $8,1000.08 At the end of September, the following adjustment had to be journalized to properly report the balances of the company’s accounts: Sep 30$30,140 of the balance of unearned revenue, still remains unearned.$3,300 Sep 30One month of prepaid insurance worth $932 has been used.$932 Sep 30Monthly depreciation on the equipment was $1,320.$1,320 Sep 30Accrued salary expense of $4,230 for an employee.$4,230 Sep 30Accrued interest on the Note Payable amounts to $125.125 Required: a) Enter the opening balances from the August 2023 balance sheet into the general ledger accounts. b) Prepare the journal entries for the month of September and post them to the appropriate general ledger accounts. c) Create the trial balance in the worksheet, and then complete the remaining section of the worksheet. d) Create the income statement, statement of owner’s equity and the classified balance sheet. e) Prepare the journal entries for the adjustments and post them to the appropriate general ledger accounts. f) Prepare the journal entries to close the books for the month of September 2023 (use the income summary account), and post the journal entries to the appropriate general ledger accounts. g) Create the post-closing trial balance. Journal JournalPage 1 DateAccount Title and ExplanationPRDRCR JournalPage 2 DateAccount Title and ExplanationPRDRCR Ledger Account:CashGL No: DateDescriptionPRDRCRBalance (DR or CR) Opening Balance Account:Accounts Receivable GL No: DateDescriptionPRDRCRBalance (DR or CR) Opening Balance Account:Prepaid InsuranceGL No: DateDescriptionPRDRCRBalance (DR or CR) Opening Balance Account:EquipmentGL No: DateDescriptionPRDRCRBalance (DR or CR) Opening Balance Account:Accumulated DepreciationGL No: DateDescriptionPRDRCRBalance (DR or CR) Opening Balance Account:Accounts PayableGL No: DateDescriptionPRDRCRBalance (DR or CR) Opening Balance Account:Interest PayableGL No: DateDescriptionPRDRCRBalance (DR or CR) Opening Balance Account:Salary PayableGL No: DateDescriptionPRDRCRBalance (DR or CR) Opening Balance Account:Unearned RevenueGL No: DateDescriptionPRDRCRBalance (DR or CR) Opening Balance Account:Bank LoanGL No: DateDescriptionPRDRCRBalance (DR or CR) Opening Balance Account:Note PayableGL No: DateDescriptionPRDRCRBalance (DR or CR) Opening Balance Account:Robertson, CapitalGL No: DateDescriptionPRDRCRBalance (DR or CR) Opening Balance Account:Robertson, WithdrawalsGL No: DateDescriptionPRDRCRBalance (DR or CR) Account:Income SummaryGL No: DateDescriptionPRDRCRBalance (DR or CR) Account:Service RevenueGL No: DateDescriptionPRDRCRBalance (DR or CR) Account:Advertising ExpenseGL No: DateDescriptionPRDRCRBalance (DR or CR) Account:Depreciation ExpenseGL No: DateDescriptionPRDRCRBalance (DR or CR) Account:Insurance ExpenseGL No: DateDescriptionPRDRCRBalance (DR or CR) Account:Interest ExpenseGL No: DateDescriptionPRDRCRBalance (DR or CR) Account:Salaries ExpenseGL No: DateDescriptionPRDRCRBalance (DR or CR) Account:Telephone ExpenseGL No: DateDescriptionPRDRCRBalance (DR or CR) Account:Travel ExpenseGL No: DateDescriptionPRDRCRBalance (DR or CR) Account:Rent ExpenseGL No: DateDescriptionPRDRCRBalance (DR or CR) Worksheet JR World Expeditions Worksheet September 30, 2023 Unadjusted Trial BalanceAdjustmentsAdjusted Trial BalanceIncome StatementBalance Sheet Account TitlesDRCRDRCRDRCRDRCRDRCR Adjustments JournalPage 3 DateAccount Title and ExplanationPRDRCR Statements JR World Expeditions Income Statement For the Month Ended September 30, 2023 JR World Expeditions Statement of Owner's Equity For the Month Ended September 30, 2023 JR World Expeditions Balance Sheet As at September 30, 2023 Closing Entries JournalPage 4 DateAccount Title and ExplanationPRDRCR Post-Closing Trial Balance JR World Expeditions Post-Closing Trial Balance September 30, 2023 Account TitlesDRCR
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Answered 2 days AfterMar 01, 2023

Answer To: Case StudyCaseAccounting CycleJR World Expeditions is a travel agency that offers...

Prince answered on Mar 03 2023
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Case Study
    Case    Accounting Cycle
    JR World Expeditions is a travel agency that offers international and local travel packages. The company is owned and operated by James Robertson. The closing balances at the end of August 2023 and the chart of accounts are shown below.
    JR World Expeditions    James    Robertson    August 01, 2023        September 01, 2023
    JR World Expeditions
    Balance Sheet
    As at August 31, 2023
    Assets                 Liabilities
    Cash            $31,250    Accounts Payable            $14,500
    Accounts Receivable             $10,800    Unearned Revenue            $11,000
    Prepaid Insurance            $0    Bank Loan            $32,400
    Equipment            $35,000    Note Payable
    Accumulated Depreciation            -$9,000     Total Liabilities            $57,900
                    Robertson, Capital            $10,150
    Total Assets            $68,050     Total Liabilities & Owners' Equity            $68,050
    Account Description            Account #        Account Description            Account #
    ASSETS                    REVENUE
    Cash            101        Service Revenue            400
    Accounts Receivable             105        EXPENSES
    Prepaid Insurance            110        Advertising Expense            500
    Equipment            120        Depreciation Expense            510
    Accumulated Depreciation            125        Insurance Expense            515
    LIABILITIES                    Interest Expense            520
    Accounts Payable            200        Salaries Expense            545
    Interest Payable            205        Telephone Expense            550
    Salary Payable            210        Travel Expense            555
    Unearned Revenue            215        Rent Expense            560
    Bank Loan            220
    Note Payable            225
    OWNER'S EQUITY
    Robertson, Capital            300
    Robertson, Withdrawals            310
    Income Summary            315
    For the month of September 2023, JR World Expeditions had the following transactions:
    Sep 1    James invested $12,600 cash and equipment valued at $9,900 into the business.                            $12,600    9900
    Sep 1    Prepaid $11,184 for insurance for one year.                            $11,184
    Sep 1    Paid $3,250 cash for September's rent.                            $3,250
    Sep 2    Provided travel services to group of travellers; they paid $46,400 now and will pay $9,280 later.                            $46,400    9280
    Sep 2    Purchase equipment by signing a Note Payable for $15,000, due in 3 years plus accrued interest at 10%.                            $15,000    3
                                    0.10
    Sep 5    Recorded travel expenses for $16,820 to be paid next month.                            $16,820
    Sep 15    Paid $11,600 cash to reduce the balance of accounts payable.                            $11,600
    Sep 18    Received $5,400 cash from customers for the travel services provided last month.                            $5,400
    Sep 20    Received a telephone bill for $720 which will be paid next month.                            $720
    Sep 23    Paid $8,460 cash for employee's salaries.                            $8,460
    Sep 26    Received $26,840 cash in advance from travellers for travel services to be provided next month.                            $26,840
    Sep 28    Paid $4,650 advertising expense for the promotion of the travel and tours in the month of September.                            $4,650
    Sep 29    The owner withdrew $5,710 cash for personal use.                            $5,710
    Sep 30    Paid $891 cash for the bank loan which included $675 principle and $216 interest. The loan is due in 4 years with monthly repayments of $675 principle plus interest at 8% on outstanding balance.                            $675    $216
                                        4.00
                                    $8,100    0.08
    At the end of September, the following adjustment had to be journalized to properly report the balances of the company’s accounts:
    Sep 30    $30,140 of the balance of unearned revenue, still remains unearned.                            $3,300
    Sep 30    One month of prepaid insurance worth $932 has been used.                            $932
    Sep 30    Monthly depreciation on the equipment was $1,320.                            $1,320
    Sep 30    Accrued salary expense of $4,230 for an employee.                            $4,230
    Sep 30    Accrued interest on the Note Payable amounts to $125.                            125
    Required:
    a) Enter the opening balances from the August 2023 balance sheet into the general ledger accounts.
    b) Prepare the journal entries for the month of September and post them to the appropriate general ledger accounts.
    c) Create the trial balance in the worksheet, and then complete the remaining section of the worksheet.
    d) Create the income statement, statement of owner’s equity and the classified balance sheet.
    e) Prepare the journal entries for the adjustments and post them to the appropriate general ledger accounts.
    f) Prepare the journal entries to close the books for the month of September 2023 (use the income summary account), and post the...
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