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 ozami invested $30,000 cash and computer equipment worth $20,000 in the company in exchange for common stock 30 points 2 The company rented furnished office space by paying $1,800 cash for the firat nonth s (April) rent 3 The company purchased $1,000 of office supplies for cash 10 The company paid $2,400 cash for the premiun on a 12-nonth 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 $8,000 cash on commissions from airlines on tickets obtained for customers 28 The company paid $1,600 cash for two weeks' salaries earned by employees 29 The company paid $350 cash for minor repairs to the companys computer 30 The company paid $750 cash for this month's telephone bill 30 The company paid $1,500 cash in dividends The company's chart of accounts follows: 101 Cash 106 Accounts Receivable 124 office Supplies 128 Prepaid Insurance 67 Computer Equipment 168 Accumulated Depreciation Computer Equip 209 Salaries Payable 307 Comnon Stock 318 Retained Earnings 319 Dividends 405 Comnissions Earned 612 Depreciation Expense conputer Equip 622 Salaries Expense 637 Insurance Expenso 640 Rent Expense 650 office Supplics Expense 684 Repairs Expense 688 Telephone Expense 901 Income Summary Use the following information: a. Two-thirds (or $133) 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 $500. d. Employees earned $420 of unpaid and unrecorded salaries as of month-end. e. The company earned $1,750 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. re a post-closing trial balance. Retained Earnings Debit Dividends Date Date (1,500) 697 April 30 Div 1,500 2,19 Debit Credit Debit Balance (9,750) (1,750) Salaries Expense Debit Credit Balance April 14 April 28 April 30 1.600 3,200 3,620 April 10 1,600 2,400 2,267 Rent Expense Office Supplies Expense Date Date April 2 1,800 April 3 1.000 Repairs Expense Debit Expense Debit April 30 Tel April 30 Retained Earnings Date Date (1,500) 697 April 30 1,500 2,19 Co Earned r Equipment Date Date Debit (9,750) (1,750) April 30 Salaries Expense Date April 14 April 28600 April 30 Date 1,600 133 1.600 3,200 3,620 April 30 Rent Expense Office Supplies Expense Date Date April 2 1,800 April 30 Repairs Expense Credit April 29 April 30
