On April 1, 2017, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the companys first month. April 1 Nozomi invested $41,000 cash and computer equipment worth $35,000 in the company in exchange for common stock. 2 The company rented furnished office space by paying $1,700 cash for the first months (April) rent. 3 The company purchased $1,700 of office supplies for cash. 10 The company paid $2,300 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. 14 The company paid $1,700 cash for two weeks' salaries earned by employees. 24 The company collected $12,500 cash on commissions from airlines on tickets obtained for customers. 28 The company paid $1,700 cash for two weeks' salaries earned by employees. 29 The company paid $450 cash for minor repairs to the company's computer. 30 The company paid $950 cash for this month's telephone bill. 30 The company paid $2,100 cash in dividends. The company's 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: Two-thirds (or $128) of one months insurance coverage has expired. At the end of the month, $500 of office supplies are still available. This months depreciation on the computer equipment is $500. Employees earned $550 of unpaid and unrecorded salaries as of month-end. The company earned $1,550 of commissions that are not yet billed at month-end.

Required: 1. & 2. Prepare journal entries to record the transactions for April and post them to the ledger accounts in Requirement 6b. The company records prepaid and unearned items in balance sheet accounts. 3. Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30. 4. Journalize and post the adjusting entries for the month and prepare the adjusted trial balance. 5a. Prepare the income statement for the month of April 30, 2017. 5b. Prepare the statement of retained earnings for the month of April 30, 2017. 5c. Prepare the balance sheet at April 30, 2017. 6a. Prepare journal entries to close the temporary accounts and then post to Requirement 6b. 6b. Post the journal entries to the ledger. 7. Prepare a post-closing trial balance.

Req 1 and 2

Req 3

Req 4 Adj Entries

Req 4 Adj Trial Bal

Req 5A

Req 5B

Req 5C

Req 6A

Req 6B GL

Req 7

Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30.

ADVENTURE TRAVEL
Unadjusted Trial Balance
April 30, 2017
Account Title	Debit	Credit
101: Cash
106: Accounts receivable
124: Office supplies
128: Prepaid insurance
167: Computer equipment
168: Accumulated depreciationComputer equipment
209: Salaries payable
307: Common stock
318: Retained earnings
319: Dividends
405: Commissions earned
612: Depreciation expenseComputer equipment
622: Salaries expense
637: Insurance expense
640: Rent expense
650: Office supplies expense
684: Repairs expense
688: Telephone expense
Total	$0	$0