On April 1, 2011, Jennifer Stafford created a new travel agency, See-It-Now Travel.

The following transactions occurred during the company's first month.

April 1 Stafford received shares for investing $20,000 cash and computer equipment worth $40,000 in the company.

April 2 The company rented furnished office space by paying $1,700 cash for the first month's (April) rent.

April 3 The company purchased $1, 100 of office supplies for cash.

April 10 The company paid $3,600 cash for the premium on a 12-month insurance policy. Coverage begins on April 11.

April 14 The company paid $1,800 cash for two weeks' salaries earned by employees.

April 24 The company collected $7,900 cash on commissions from airlines on tickets obtained for customers.

April 28 The company paid $1,800 cash for two weeks' salaries earned by employees.

April 29 The company paid $250 cash for minor repairs to the company's computer.

April 30 The company paid $650 cash for this month's telephone bill.

April 30 The company paid dividends of $1,500

1. Use the balance column format to set up each ledger account listed in its chart of accounts.

2. Prepare journal entries to record the transactions for April and post them to the ledger accounts. The company records prepaid and unearned items in statement of financial position accounts.

3. Prepare an unadjusted trial balance as at April 30.

4. Use the following information to journalize and post adjusting entries for the month:

a. Two-thirds of one month's insurance coverage has expired.

b. At the end of the month, $700 of office supplies are still available.

c. This month's depreciation on the computer equipment is $600.

d. Employees earned $320 of unpaid and unrecorded salaries as at month-end.

e. The company earned $1,650 of commissions that are not yet billed at month-end.

5. Prepare the income statement and the statement of changes in equity for the month of April and the statement of financial position at April 30, 2011.

6. Prepare journal entries to close the temporary accounts and post these entries to the ledger.

7. Prepare post-closing trial balance.