3-5A (Algo) Applying the accounting cycle LO P1, P3, P4, P5, P6 On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month. April 2 Nozomi invested $49,000 cash and computer equipment worth $30,000 in the company in exchange for its common stock.. April 3 The company rented furnished office space by paying $1,900 cash for the first month's (April) rent. April 4 The company purchased $1,100 of office supplies for cash. April 10 The company paid $2,340 cash for a 12-month insurance policy. Coverage begins on April 11. April 14 The company paid $1,700 cash for two weeks' salaries earned by employees. April 24 The company collected $11,000 cash for commissions revenue. April 28 The company paid $1,700 cash for two weeks' salaries earned by employees. April 29 The company paid $300 cash for minor repairs to computer equipment. April 30 The company paid $850 cash for this month's telephone bill. April 30 The company paid $1,580 cash in dividends. The company's chart of accounts follows: 101 Cas 106 Accounts Receivable 124 Office Supplies 128 Prepaid Insurance 167 Computer Equipment 168 Accumulated Depreciation-Computer Equipment 209 Salaries Payable 307 Common Stock 318 Retained Earnings 319 Dividends Use the following information to prepare adjusting entries: a. Prepaid insurance of $130 expired this month. 403 Commissions Revenue 612 Depreciation Expense-Computer Equipment 622 Salaries Expense 637 Insurance Expense 640 Rent Expense 650 Office Supplies Expense 684 Repairs Expense 688 Telephone Expense 901 Income Summary b. At the end of the month, $400 of office supplies are still available. c. This month's depreciation on computer equipment is $500. d. Employees earned $480 of unpaid and unrecorded salaries as of month-end. 167 Computer Equipment 168 Accumulated Depreciation-Computer Equipment 209 Salaries Payable 307 Common Stock 318 Retained Earnings 319 Dividends Use the following information to prepare adjusting entries: a. Prepaid insurance of $130 expired this month. 640 Rent Expense 650 Office Supplies Expense 684 Repairs Expense 688 Telephone Expense 901 b. At the end of the month, $400 of office supplies are still available. c. This month's depreciation on computer equipment is $500. Income Summary d. Employees earned $480 of unpaid and unrecorded salaries as of month-end. e. The company earned $2,300 of commissions revenue that is not yet recorded at month-end. Required: 1. & 2. Prepare journal entries to record the transactions for April and post them to ledger accounts in Requirement 6B GL tab. The company records prepaid and unearned items in balance sheet accounts. 3. Using account balances from Requirement 6B GL tab, prepare an unadjusted trial balance as of April 30. 4. Journalize the adjusting entries for the month, and then post to the ledger on Requirement 68 GL tab, using April 30 Adjusted as the date. Sa. Using justed account balances from Requirement 6B GL tab, prepare an adjusted trial balance as of April 30. 5b. Prepare the income statement for the month of April 30. 5c. Prepare the statement of retained earnings for the month of April 30. 5d. Prepare the balance sheet at April 30. 6a. Prepare journal entries to close the temporary accounts and then post to Requirement 68 GL tab, using April 30 Close as the date. 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 21 Req 3 Req 4 Req 5A Req 58 Req SC Req 5D Req 6A Req 68 GL Req 7 Req 1 and 2 Req 3 Req 4 Req 5A Req 5B Req 5C Req 5D Req 6A Req 6B GL Req 7 Using account balances from Requirement 6B, prepare an unadjusted trial balance as of April 30. ADVENTURE TRAVEL Unadjusted Trial Balance April 30 Account Title 101: Cash Debit Credit $ 48,530 106: Accounts receivable 124: Office supplies 1,100 128: Prepaid insurance 2,340 167: Computer equipment 30,000 168: Accumulated depreciation-Computer equipment 209: Salaries payable 307: Common stock 318: Retained earnings 319: Dividends 403: Commissions revenue 79,000 1,580 11,000 612: Depreciation expense-Computer equipment 622: Salaries expense 637: Insurance expense 640: Rent expense 1,900 650: Office supplies expense 684: Repairs expense 688: Telephone expense Totals 300 $ 850 86,600 $ 90,000