1 Problem 4-1A Applying the accounting cycle LO C1, C2, P2, P3 On April 1, 2017, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month. 60 April 1 Nozomi invested $44,000 cash and computer equipment worth $35,000 in the company 2 The company rented furnished office space by paying $2,900 cash for the first month's (April) rent. 3 The company purchased $1,000 of office supplies for cash 10 The company paid $2,400 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. 14 The company paid $900 cash for two weeks' salaries earned by employees. 24 The company collected $17,500 cash on commissions from airlines on tickets obtained for customers. 28 The company paid $900 cash for two weeks points ook salaries earned by employees. 350 cash for minor repairs to the company's computer. company pai Company p References 30 The 30 Nozomi withdrew $1,500 cash from the company for personal use. mon S elephone ** The company's chart of accounts follows: 101 Cash 106 Accounts Receivable 124 office Supplies 128 Prepaid Insurance 167 Computer Equipment 168 Accumulated Depreciation-Computer Equip 209 Salaries Payable 301 J. Nozomi, Capital 302 J. Nozomi, Withdrawals 405 Commissions Earned 612 Depreciation Expense-Computer Equi 622 Salaries Expense 637 Insurance Expense 640 Rent Expense 650 office Supplies Expense 684 Repairs Expense 688 Telephone Expense 901 Income Summary Use the following information: a. Two-thirds (or $133) of one month's insurance coverage has expired. b. At the end of the month, $600 of office supplies are still available. c. This month's depreciation on the computer equipment is $300 d. Employees earned $380 of unpaid and unrecorded salaries as of month-end. e. The company earned $1,900 of commissions that are not yet billed at month-end. Required: 1. & 2. Prepare journal entries to record the transactions for April and post them to the ledger accounts in Requirement 6b. The company records prepaid and unearned items in balance sheet accounts 3. Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30. accounts. 1 3. Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30. 4. Journalize the adjusting entries for the month and prepare the adjusted trial balance. 5a. Prepare the income statement for the month of April 30, 2017. 5b. Prepare the statement of owner's equity for the month of April 30, 2017. 5c. Prepare the balance sheet at April 30, 2017. 6a. Prepare journal entries to close the temporary accounts and then post to Requirement 6b. 6b. Post the journal entries to the ledger. 7. Prepare a post-closing trial balance. 60 points eBook Complete this question by entering your answers in the tabs below. Req 4 Adj Entries Req 4 Adj Trial Bal References Req 3 Req 5A Req 6A Req 5B Req 5C Rea Req 1 and 2 Journalize the adjusting entries for the month, and then post to the ledger on Req 6B tab, using April 30 View transaction list Journal entry worksheet 5 4 Two-thirds (or $133) of one month's insurance coverage has expired. Note: Enter debits before credits. Transaction General Journal Debit Credit a 1 Complete this question by entering your answers in the tabs below. Req 4 Adj Req 4 Adj Trial Bal Req 6A Req 3 Req 5A Req 5B Req 5C Req Req 1 and 2 Entries 60 Using adjusted account balances from Requirement 6b, prepare an adjusted trial balance as of April 30. intermediate calculations.) points ADVENTURE TRAVEL Adjusted Trial Balance ook April 30, 2017 Account Title Debit Credit 101: Cash References 106: Accounts receivable 124: Office supplies 128: Prepaid insurance 167: Computer equipment 168: Accumulated depreciation-Computer equipment 209: Salaries payable 301: J. Nozomi, Capital 302: J. Nozomi, Withdrawals 405: Commissions earned 612: Depreciation expense-Computer equipment 622: Salaries expense 637: Insurance expense 640: Rent expense 650: Office supplies expense 684: Repairs expense 688: Telephone expense Total $ 0S 0 Req 4 Adj Entries Req 5A