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 $32,000 cash and computer equipment worth $30,000 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 $2,800 cash for the premiun on a 12-month insurance policy. Coverage begins on April 11. 14 The company paid $1,500 cash for two weeks' salaries earned by employees 24 The company collected $22,000 cash on connissions from airlines on tickets obtained for customers. 28 The company paid $1,500 cash for two weeks' salaries earned by employees. 29 The company paid $300 cash for minor repairs to the company's computer 30 The company paid $1,300 cash for this month's telephone bill. 30 The company paid $1,700 cash in dividends. The company's chart of accounts follows: 101 Cash 106 Recounts Receivable 124 Office Supplies 128 Prepaid Insurance 167 Computer Equipment 168 Accumulated Depreciation Computer Equip. 209 Salaries Payable 307 Connon Stock 318 Retained Earnings 319 Dividenda 405 Comissions Barned 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 Incone Summary Use the following information: a. Two-thirds (or $156) of one month's Insurance coverage has expired. b. At the end of the month, $600 of office supplies are still available. c. This month's depreciation on the computer equipment is $400. d. Employees earned $320 of unpaid and unrecorded salaries as of month-end. e. The company earned $1,600 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 65. The company records prepaid and unearned items in balance sheet accounts. Required: 1. & 2. Prepare journal entries to record the transactions for April and post them to the ledger accounts in Requirement 66. 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. Nozomi invested $32,000 cash and computer equipment worth $30,000 in the company in exchange for common stock. Note: Enter debits Before credits. Date General Journal Debit Credit April 01 The company rented furnished office space by paying $2,800 cash for the first month's (April) rent. Note: Enter debits Before credits General Journal Debit Credit Date April 02 The company purchased $1,300 of office supplies for cash. Note: Enter debits Before credits. Date General Journal Debit Credit April 03 The company paid $2,800 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. Note: Enter debits Before credits. General Journal Debit Credit Date April 10 The company paid $1,500 cash for two weeks' salaries earned by employees. Note: Enter debits tefore credits Date General Journal Debit Credit April 14 The company collected $22,000 cash on commissions from airlines on tickets obtained for customers. Note: Enter debits Before credits. Date General Journal Debit Credit April 24 The company paid $1,500 cash for two weeks' salaries earned by employees. Note: Enter debits Before credits Date General Journal Debit Credit April 28 The company paid $300 cash for minor repairs to the company's computer. Note: Enter debits defore credits. Date General Journal Debit Credit April 29 The company paid $1,300 cash for this month's telephone bill. Note: Enter debits Before credits. Date General Journal Debit Credit April 30 The company paid $1,700 cash in dividends. Note: Enter debits Before credits Debit General Journal Date Credit 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 depreciation Computer equipment 209: Salaries payable 307: Common stock + 318: Retained earnings 319: Dividends 405: Commissions earned 612: Depreciation expense--Computer equipment 622: Salaries expense 637: Insurance expense 640: Rent expense 650: Office supplies expense 684: Repairs expense 688: Telephone expense Total Two-thirds (or $156) of one month's insurance coverage has expired. Note: Enter debits before credits Transaction General Journal Debit Credit a At the end of the month, $600 of office supplies are still available. Note: Enter debits before credits. Transaction General Journal Debit Credit b. This month's depreciation on the computer equipment is $400 Note: Enter debits before credits Transaction General Journal Debit Credit c Employees earned $320 of unpaid and unrecorded salaries as of month-end. Note: Enter debits before credits Transaction General Journal Dobit Credit d The company earned $1,600 of commissions that are not yet billed at month- end. Note: Enter debits before credits Transaction General Journal Debit Credit 0. ADVENTURE TRAVEL Adjusted 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 depreciation-Computer equipment 209: Salaries payable 307: Common stock 318: Retained earnings 319: Dividends 405: Commissions earned 612: Depreciation expense--Computer equipment 622: Salaries expense 637: Insurance expense 640: Rent expense 650: Office supplies expense 684: Repairs expense 688: Telephone expense Total ADVENTURE TRAVEL Income Statement For Month Ended April 30, 2017 Revenues: Expenses: Total expenses ADVENTURE TRAVEL Statement of Retained Earnings For Month Ended April 30, 2017 Retained earnings, April 1, 2017 $ 0 14,424 Retained earnings, April 30, 2017 ADVENTURE TRAVEL Balance Sheet April 30, 2017 + Total assets Total equity Total liabilities and equity Record the entry to close revenue account(s). Note: Enter debits before credits Date General Journal Debit Credit April 30 Record the entry to close expense account(s). Note: Enter debits before credits. Date General Journal Debit Credit April 30 Record the entry to close income summary Note: Enter debits before credits. General Journal Debit Credit Date April 30 Record the entry to close the withdrawals account. Note: Enter debits before credits. Date General Journal Debit Credit April 30 General Ledger accounts Cash Credit Accounts Receivable Debit Credit Date Debit Credit Balance Date Balance Office Supplies Debit Credit Prepaid Insurance Debit Credit Date Balance Date Balance Computer Equipment Debit Credit Accumulated Depreciation-Computer equipment Debit Credit Balance Date Balance Date Salaries Payable Debit Credit Common Stock Debit Credit Date Balance Balance Date Balance Retained Earnings Debit Credit Dividends Debit Credit Date Balance Date Balance Commissions earned Debit Credit Depreciation Expense Computer Equipment Date Debit Credit Balance Date Balance Salaries Expense Debit Credit Insurance Expense Debit Credit Date Balance Date Balance Rent Expense Debit Credit Office Supplies Expense Debit Credit Date Balance Date Balance Repairs Expense Debit Credit Telephone Expense Debit Credit Date Balance Date Balance Income Summary Debit Credit Date Balance ADVENTURE TRAVEL Post-Closing Trial Balance April 30, 2017 Account Title Debit Credit Totals