On April 1, 2017, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month. April 1 Nozomi invested $34,000 cash and computer equipment worth $35,000 in the company in exchange for common stock. 2 The company rented furnished office space by paying $2,800 cash for the first month's (April) rent. 3 The company purchased $1,300 of office supplies for cash. 10 The company paid $2,200 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. 14 The company paid $1,600 cash for two weeks' salaries earned by employees. 24 The company collected $23,500 cash on commissions from airlines on tickets obtained for customers. 28 The company paid $1,600 cash for two weeks' salaries earned 29 The company paid $250 cash for minor repairs to the company's computer. 30 The company paid $1,350 cash for this month's telephone bill. 30 The company paid $2,300 cash in dividends. The company's chart of accounts follows: 101 Cash 106 Accounts Receivable 124 Office Supplies 128 Prepaid Insurance 167 Computer Equipment 168 Accumulated Depreciation-Computer Equip. 209 Salaries Payable 307 Common Stock 318 Retained Earnings 319 Dividends 405 Commissions Earned 612 Depreciation Expense-Computer Equip. 622 Salaries Expense 637 Insurance Expense 640 Rent Expense 650 Office Supplies Expense 684 Repairs Expense 688 Telephone Expense 901 Income Summary Use the following information: a. Two-thirds (or $122) 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 $300. d. Employees earned $570 of unpaid and unrecorded salaries as of month-end. e. The company earned $2,350 of commissions that are not yet billed at month-end. General Ledger accounts Cash Debit 34,000 Accounts Receivable Debit Credit Credit Date Balance 2,350 2,350 Date April 1 April 2 April 3 April 10 April 14 April 24 April 28 April 29 April 30 2,800 1,300 2,200 1,600 Balance 34,000 31,200 29,900 27,700 26,100 49,600 48,000 47,750 45,450 23,500 1,600 250 2,300 Date Date April 3 Balance Office Supplies Debit Credit 1,300 600 Prepaid Insurance Debit Credit 122 Balance 1,300 700 (122) Computer Equipment Debit Credit 35,000 Date April 1 Date Balance 35,000 Accumulated Depreciation Computer equipment Debit Credit Balance 300 300 Date Salaries Payable Debit Credit 570 Balance 570 Date April 1 Common Stock Debit Credit 69,000 Balance 69,000 Retained Earnings Debit Credit Date Balance Date April 30 Dividends Debit Credit 2,300 Balance 2,300 Date April 24 Commissions earned Debit Credit 23,500 Balance 23,500 Depreciation Expense-Computer Equipment Date Debit Credit Balance 300 300 Date Date April 14 April 28 Salaries Expense Debit Credit 1,600 1,600 Balance 1,600 3,200 Insurance Expense Debit Credit 122 Balance 122 Rent Expense Debit Credit 2,800 Office Supplies Expense Debit Credit Date April 2 Date Balance 2,800 Balance 600 600 Date April 29 Repairs Expense Debit Credit 250 Balance 250 Date April 30 Telephone Expense Debit Credit 1,350 Balance 1,350 Income Summary Debit Credit Date Balance
