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 $32,000 cash and computer equipment worth $40,000 in the company in exchange for common stock.
		2		The company rented furnished office space by paying $1,900 cash for the first months (April) rent.
		3		The company purchased $1,800 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 $1,400 cash for two weeks' salaries earned by employees.
		24		The company collected $17,000 cash on commissions from airlines on tickets obtained for customers.
		28		The company paid $1,400 cash for two weeks' salaries earned by employees.
		29		The company paid $500 cash for minor repairs to the company's computer.
		30		The company paid $1,250 cash for this month's telephone bill.
		30		The company paid $2,200 cash in dividends.

The company's chart of accounts follows:

Use the following information:

1. Two-thirds (or $122) of one months insurance coverage has expired.
2. At the end of the month, $600 of office supplies are still available.
3. This months depreciation on the computer equipment is $400.
4. Employees earned $470 of unpaid and unrecorded salaries as of month-end.
5. 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.

4)

5a)

5c)

6a)

6b)

7)

405 Commissions Earned 101 Cash 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 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 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 0 Total ADVENTURE TRAVEL Income Statement For Month Ended April 30, 2017 Revenues: Commissions earned Expenses: Salaries expense Rent expense Insurance expense Office supplies expense Telephone expense Repairs expense Depreciation expense-Computer equip Total expenses $ Net income ADVENTURE TRAVEL Balance Sheet April 30, 2017 Assets Cash Prepaid insurance Accounts receivable Office supplies Computer equipment Accumulated depreciation-Computer equip 0 0 Total assets Liabilities Salaries payable Equity Common stock Retained earnings Total equity 0 Total liabilities and equity 0 OO Import a new list Record the entry to close revenue account(s). 1 Record the entry to close expense account(s). 2 Record the entry to close income summary. 3 Record the entry to close the withdrawals account. 4 Debit Date General Journal Credit April 30 General Ledger accounts Cash Accounts Receivable Date Debit Credit Balance Date Debit Credit Balance Office Supplies Prepaid Insurance Credit Balance Date Debit Balance Date Debit Credit Computer Equipment Accumulated Depreciation-Computer equipment Date Credit Debit Credit Balance Debit Balance Date Salaries Payable Common Stock Credit Debit Date Debit Balance Date Credit Balance Retained Earnings Dividends Date Debit Credit Balance Date Debit Credit Balance Depreciation Expense Computer Equipment Commissions earned Date Debit Credit Balance Date Debit Credit Balance Salaries Expense Insurance Expense Debit Date Debit Credit Balance Date Credit Balance Rent Expense Office Supplies Expense Debit Credit Balance Date Debit redit Ba ate Repairs Expense Telephone Expense Date Debit Credit Balance Date Debit Credit Balance Income Summary Date Debit Credit Balance ADVENTURE TRAVEL Post-Closing Trial Balance April 30, 2017 Account Title Debit Credit $ 0 0 Totals