3-5A (Static) 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 $30,000 cash and computer equipment worth $20,000 in the company in exchange for its common stock. April 3 The company rented furnished office space by paying $1,800 cash for the first month's (April) rent. April 4 The company purchased $1,000 of office supplies for cash. April 10 The company paid $2,400 cash for a 12-month insurance policy. Coverage begins on April 11. April 14 The company paid $1,600 cash for two weeks' salaries earned by employees. April 24 The company collected $8,000 cash for commissions revenue. April 28 The company paid $1,600 cash for two weeks' salaries earned by employees. April 29 The company paid $350 cash for minor repairs to computer equipment. April 30 The company paid $750 cash for this month's telephone bill. April 30 The company paid $1,500 cash in dividends. The company's chart of accounts follows. 101 Cash 106 Accounts Receivable 124 Office Supplies 128 Prepaid Insurance 167 Computer Equipment Salaries Payable 168 Accumulated Depreciation-Computer Equipment 209 307 Common Stock 318 Retained Earnings 319 Dividends 612 622 637 403 Commissions Revenue Depreciation Expense-Computer Equipment Salaries Expense Insurance Expense 640 Rent Expense 650 Office Supplies Expense 684 Repairs Expense 688 901 Telephone Expense Income Summary Use the following Information to prepare adjusting entries: a. Prepaid Insurance of $133 expired this month. b. At the end of the month, $600 of office supplies are still available. c. This month's depreciation on computer equipment is $500. d. Employees earned $420 of unpaid and unrecorded salaries as of month-end. e. The company earned $1,750 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 6B GL tab, using April 30 Adjusted as the date. Sa. Using adjusted 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 6B GL tab, using April 30 Close as the date. 6b. Post the journal entries to the ledger. 7. Prepare a post-closing trial balance. 101: Cash General Ledger accounts Date Debit Credit Balance Date April 2 April 3 30,000 30,000 April 30 Adjusted 1,800 28,200 April 4 1,000 27,200 April 10 2,400 24,800 April 14 1,600 23,200 April 24 8,000 31,200 April 28 1,600 29,600 April 29 350 29,250 April 30 750 28,500 April 30 1,500 27,000 Date April 4 April 30 Adjusted Date Date 124: Office supplies Debit 1,000 Credit 167: Computer equipment Debit 600 106: Accounts receivable Debit 1,750 Credit Balance 1,750 Balance Date 128: Prepaid insurance Debit Credit Balance 1,000 400 168: Accumulated depreciation-Computer equipment Credit Balance Date 209: Salaries payable Debit Debit Credit Balance 307: Common stock Credit Balance Date Debit Credit Balance Date Date Date Date Date Date 318: Retained earnings Debit 319: Dividends Credit Balance Date Debit Credit Balance 403: Commissions revenue Debit 612: Depreciation expense-Computer equipment Credit Balance Date 622: Salaries expense Debit Debit Credit Balance 637: Insurance expense Credit Balance Date Debit Credit Balance Credit Balance Date 650: Office supplies expense Debit Credit Balance 640: Rent expense Debit 684: Repairs expense Debit 688: Telephone expense Credit Balance Date Debit Credit Balance 901: Income summary Debit Credit Balance