This assignment had 2 parts please keep them separate Unit 3 and unit 5.On December 1, 2015 John Trap created a new travel agency, Trap Adventures, Inc. providing exclusive adventure trips. The follo

This assignment had 2 parts please keep them separate Unit 3 and unit 5.

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 12-month 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.

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 Requirements

Using the spreadsheet found here and information above, complete the following:

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

Use the Data from the assignment above

Adjustment Data: You will have an Excel and Word file for this assignment. 

    •    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. (Completed in Unit 3)

    2    Prepare an unadjusted trial balance (Completed in Unit 3)

    3    Create adjusting journal entries at the end of the year, December 31 based on the adjustment data. 

    4    Prepare an adjusted trial balance. 

    5    Prepare an income statement, statement of stockholders' equity, and classified balance sheet. 

    6    Create closing journal entries to close all temporary accounts. 

    7    Prepare post-closing trial balance. 

    8    In addition, answer the questions below in 1-2 fully developed paragraphs.  A fully developed paragraph should have a major point with 3 to 5 support sentences.  One or two sentences is not acceptable or does not discuss the question.  Be sure to show what you know!!! 

    1    Trap Adventures, Inc. is looking for an accountant.  In your own words, explain to Trap's hiring team the role of accountant and accounting within business.  Provide examples of the expectations of the accountant. 

    2    Discuss the financial position of Trap Adventures, Inc. using the following ratios:  

    1    Current ratio 

    2    Return on equity: For each ratio, provide the calculation and an explanation of the meaning.  Is this a positive or negative result for the Trap Adventures, Inc.?