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 1 John Trap invested $60,000 cash in the company for common stock.
2 Purchase office equipment for $17,500 cash.
2 The company rented furnished office space by paying $18,000 cash for the first six months (December 2015 May 2016) rent.
3 The company purchased $1,500 of office supplies on account.
10 The company paid $3,600 cash for the premium on a 12month insurance policy.
14 The company paid $10,750 cash for two weeks' salaries earned by employees.
24 The company collected $54,000 cash on commissions from airlines on tickets obtained for customers.
28 The company paid $12,125 cash for two weeks' salaries earned by employees.
29 The company paid $350 cash for minor repairs to the company's computer.
30 The company paid $450 cash for this month's telephone bill.
30 Dividends of $3,000 cash were paid.
Final Project Requirements
Using the spreadsheet found here and information above, complete the following:
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.
1. Create journal entries to record the transactions that occurred during the month of December.