101: Cash ADVENTURE TRAVEL Adjusted Trial Balance Account Title 106: Accounts receivable 124: Office supplies 128: Prepaid insurance 167: Computer equipment April 30 Debit Credit $ 43,750 2,300 600 168: Accumulated depreciation-Computer equipment 209: Salaries payable 307: Common stock 35,000 $ 400 350 74,000 318: Retained earnings 319: Dividends 2,500 405: Commissions revenue 20,300 612: Depreciation expense-Computer equipment 400 622: Salaries expense 2,350 637: Insurance expense 640: Rent expense 650: Office supplies expense 684: Repairs expense 688: Telephone expense Total 3,000 600 450 1,200 $ 92,150 $ 95,050 < Req 4 Adj Entries Req 5A > On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month. April 1 Nozomi invested $39,000 cash and computer equipment worth $35,000 in the company in exchange for common stock. April 2 The company rented furnished office space by paying $3,000 cash for the first month's (April) rent. April 3 The company purchased $1,200 of office supplies for cash. April 10 The company paid $2,900 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. April 14 The company paid $1,000 cash for two weeks' salaries earned by employees. April 24 The company collected $18,000 cash for commissions revenue. April 28 The company paid $1,000 cash for two weeks' salaries earned by employees. April 29 The company paid $450 cash for minor repairs to the company's computer. April 30 The company paid $1,200 cash for this month's telephone bill. April 30 The company paid $2,500 cash in dividends. The company's chart of accounts follows: 101 Cash 106 Accounts Receivable 124 Office Supplies 128 Prepaid Insurance 167 Computer Equipment Accumulated Depreciation-Computer Equipment 168 209 Salaries Payable 307 Common Stock 318 Retained Earnings 319 405 Commissions Revenue 612 Depreciation Expense-Computer Equipment 622 Salaries Expense Insurance Expense 637 640 Rent Expense 650 Office Supplies Expense 684 Repairs Expense 688 901 Telephone Expense Income Summary Dividends Use the following information: a. Prepaid insurance of $161 has expired this month. b. At the end of the month, $600 of office supplies are still available. c. This month's depreciation on the computer equipment is $400. d. Employees earned $350 of unpaid and unrecorded salaries as of month-end. e. The company earned $2,300 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. 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. 5b. Prepare the statement of retained earnings for the month of April 30. 5c. Prepare the balance sheet at April 30. 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. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Adj Entries Req 4 Adj Trial Bal Req 5A Req 5B Req 5C Req 6A Req 6B GL Req 7 Prepare journal entries to close the temporary accounts and then post to Req 6B General Ledger, using April 30 Close as the date. View transaction list View journal entry worksheet No Date General Journal 1 April 30 Commissions revenue Income summary 2 April 30 Income summary Salaries expense Rent expense Repairs expense Telephone expense Depreciation expense-Computer equipment Office supplies Insurance expense 3 April 30 Income summary Retained earnings 4 April 30 Retained earnings Dividends < Req 5C Req 6B GL > Debit Credit