JM Travel anJustineMendoza2020JM Travel and ToursBalance SheetAs at March 31, 2020Assets LiabilitiesCurrent AssetsCurrent LiabilitiesCash $ 12,450 Accounts Payable $ 16,400 Accounts Receivable 6,420 Unearned Revenue 8,800 Prepaid Insurance _______ Bank loan- current portion due 6,000 Totals Current Assets $ 18,870 Total Current Liabilities 31,200 Property, Plant & EquipmentEquipment $ 61,000 Bank Loan - Non-current portion 24,000 Accumulated Depreciation(7,700) Total Liabilities 55,200 Total Property, Plant & Equipment 53,300 Owner's Equity Mendoza Capital 16,970 Total Assets $ 72,170 Total Liabilities & Owners' Equity 72,170 Account DescriptionAccount #Account DescriptionAccount #ASSETSREVENUECash101Travel Service Revenue400Accounts Receivable 105EXPENSESPrepaid Insurance110Advertising Expense500Equipment120Depreciation Expense510Accumulated Depreciation125Insurance Expense515LIABILITIESInterest Expense520Accounts Payable200Rent Expense540Bank Loan Interest Payable205Salaries Expense545Salary Payable210Telephone Expense550Unearned Revenue215Travel Expense555Bank Loan-Current Portion217Bank Loan-Non-Current Portion220OWNER'S EQUITYMendoza Capital300Mendoza Withdrawals310Income Summary315JM Travel and Tours is a travel agency that offers international and local travel services. The company is owned and operated by Justine Mendoza. The closing balances at the end of March 2020 and the chart of accounts are shown below. For the month of April 2020, JM Travel and Tours had the following transactions:Apr 1Prepaid $7,200 for insurance for one year*'Apr 1Received $12,000 from Bank Loan to be repaid in 6 months plus accrued interest at 5%. Apr 5Paid $2,100 cash for April's rentApr 6Provided $15,000 of travel services for clients on account.Apr 7Incurred $9,200 in travel expenses to be paid next month.Apr 11Purchased equipment with $8,800 cashApr 15Paid $8,200 cash to reduce the balance of accounts payableApr 16Justine invested $9,000 cash and equipment valued at $7,200 into the businessApr 18Received $3,210 from customers as payments on account for traveller services provided last month.Apr 20Received a telephone bill for $1,710 which was paid same dayApr 23Paid $3,200 cash for employee's salariesApr 25Received $15,000 cash in advance from clients who will receive travel services next month.**'Apr 26Paid the monthly payment of the bank loan, $500 plus interest of $75.Apr 27Provided travel services for clients for $30,000 cashApr 28Paid $3,000 advertising expense for the promotion of the travel and tours in the month of AprilApr 29The owner withdrew $2,500 cash for personal use* Since the loan is to be repaid in less than one year, use the Bank Loan-Current Portion for the credit entryApr 30Recognized $3,500 of Unearned Revenue as being earned during the month of April.Apr 30Interest of $50 has accrued on the bank loan.Apr 30One month of prepaid insurance worth $600 has expired.Apr 30One month of depreciation for $500 needs to be recorded. Apr 30Accrued salary expense of $720 needs to be recordedRequired:a) Enter the opening balances from the March 2020 balance sheet into the general ledger accounts.b) Prepare the journal entries for the month of April and post them to the appropriate general ledger accounts.c) Create the trial balance in the worksheet, and then complete the remaining section of the worksheet.d) Create the income statement, statement of owners equity and the classified balance sheet.e) Prepare the journal entries for the adjustments and post them to the appropriate general ledger accounts.g) Create the post-closing trial balance.** Use the Bank Loan-Non-Current Portion for the debit entry for the loan payment since the same amount is still due over the next 12 months; therefore amount of current portion has not changed.At the end of April, the following adjustment had to be journalized to properly report the balances of the companys accounts:Note: The bank loan is repayable in monthly payments of $500 plus interest. Current portion is $6,000 ($500x12) and long-term is $24,000. When recording monthly payment, please be sure to debit the non-current portion and not the current portion as the latter will not change until the last year of the loan. f) Prepare the journal entries to close the books for the month of April 2020(use the income summary account), and post the journal entries to the appropriate general ledger accounts.Note: Please read the instructions carefully and follow required steps in the order provided above. Refer to your textbook if needed (Chapter 6) for format of financial statements. Templates have been set up using formats shown in textbook.