April 1, 2013, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the companys first month.

April	1		Nozomi invested $37,000 cash and computer equipment worth $27,000 in the company in exchange for common stock.
	2		The company rented furnished office space by paying $2,500 cash for the first months (April) rent.
	3		The company purchased $1,700 of office supplies for cash.
	10		The company paid $2,250 cash for the premium on a 12-month insurance policy. Coverage begins on April 11.
	14		The company paid $2,300 cash for two weeks salaries earned by employees.
	24		The company collected $11,500 cash on commissions from airlines on tickets obtained for customers.
	28		The company paid $2,300 cash for two weeks salaries earned by employees.
	29		The company paid $500 cash for minor repairs to the companys computer.
	30		The company paid $800 cash for this months telephone bill.
	30		The company paid $2,200 cash for dividends.

The companys chart of accounts follows:

101

Cash

405

Commissions Earned

106

Accounts Receivable

612

Depreciation ExpenseComputer Equip.

124

Office Supplies

622

Salaries Expense

128

Prepaid Insurance

637

Insurance Expense

167

Computer Equipment

640

Rent Expense

168

Accumulated DepreciationComputer Equip.

650

Office Supplies Expense

209

Salaries Payable

684

Repairs Expense

307

Common Stock

688

Telephone Expense

318

Retained Earnings

901

Income Summary

319

Dividends

Use the following information:

a.	Two-thirds (or $125) of one months insurance coverage has expired.
b.	At the end of the month, $950 of office supplies are still available.
c.	This months depreciation on the computer equipment is $850.
d.	Employees earned $490 of unpaid and unrecorded salaries as of month-end.
e.	The company earned $2,450 of commissions that are not yet billed at month-end.

1.

The general ledger and all the necessary accounts are provided in Part 6.2. Post all journal entries, adjusting entries and closing entries to the general ledger given in Part 6.2

2.

Prepare journal entries to record the transactions for April and post them to the ledger accounts in Part 6.2. The company records prepaid and unearned items in balance sheet accounts.

.

3.Using account balances from part 6.2, prepare an unadjusted trial balance as of April 30.

4.

Journalize the adjusting entries for the month and then post to section 6.2.

5.

Prepare the income statement for the month of April 30, 2013.

6. Prepare the statement of retained earnings for the month of April 30, 2013. 7. Prepare the balance sheet at April 30, 2013.