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 $35,000 cash and computer equipment worth $35,000 in the company in exchange for common stock

2 The company rented furnished office space by paying $1,500 cash for the first month's (April) rent

3 The company purchased $1,100 of office

10 The company paid $2,800 cash for the premium on a 12-month insurance policy. Coverage begins or

14 The company paid $1,100 cash for two weeks' salaries earned by

24 The company collected $20,000 cash on commissions from airlines on tickets obtained for customers.

28 The company paid $1,100 cash for two weeks' salaries earned by

29 The company paid $500 cas

30 The company paid $1,050 cash for this month's telephone bill.

30 The company paid $2,500 cash in dividends.

supplies for cash.

April 11.

employees.

for minor repairs to the company's computer.

The company's chart of accounts follows:

405 Commissions Eaned

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

C as

Accounts Receivable

1

11

106

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

Use the following information:

a. Two-thirds (or $156) 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 $400.

d. Employees earned $570 of unpaid and unrecorded salaries as of month-end.

e. The company earned $2,000 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.