On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month. April 1 Nozomi invested $43,000 cash and computer equipment worth $30,000 in the company in exchange for common stock. 2 The company rented furnished office space by paying $1,500 cash for the first month's (April) rent. 3 The company purchased $1,700 of office supplies for cash. 10 The company paid $2,700 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. 14 The company paid $1,200 cash for two weeks' salaries earned by employees. 24 The company collected $13, eee cash for commissions revenue. 28 The company paid $1,200 cash for two weeks' salaries earned by employees. 29 The company paid $350 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 $1,8ee cash in dividends. The company's chart of accounts follows: 101 Cash 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 405 Commissions Revenue 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 Use the following Information: a. Prepaid Insurance of $150 has expired this month. 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 $350 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 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 the adjusting entries for the month and prepare the adjusted trial balance. 5a. Prepare the income statement for the month of April 30. 5b. Prepare the statement of retained earnings for the month of April 30. 5c. Prepare the balance sheet at April 30. 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. Reg 1 and 2 Reg 3 Req 4 Adj Entries Reg 4 Adi Trial Bal Reg 5A Reg 5B Reg 5C Reg 6A Reg 6B GL Reg 7 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. No Date General Journal Debit Credit 1 April 01 Cash 43,000 30,000 Computer equipment Common stock 73,000 2 April 02 Rent expense 1,500 Cash 1,500 3 April 03 1,700 Office supplies Cash 1,700 4 April 10 2.700 Prepaid insurance Cash 2,700 5 April 14 1,200 Salaries expense Cash 1,200 6 April 24 13,000 Cash Commissions revenue 13,000 7 April 28 Salaries expense 1.200 Cash 1,200 8 April 29 350 Repairs expense Cash 350 9 April 30 1.250 Telephone expense Cash >> 1.250 > 10 April 30 Dividends 1,800 Cash 1,800 Reg 1 and 2 Reg 3 Req 4 Adj Entries Req 4 Adj Trial Bal Reg SA Reg 5B Reg 5C Reg 6A Reg 6B GL Reg 7 Using adjusted account balances from Requirement 6b, prepare an adjusted trial balance as of April 30. ADVENTURE TRAVEL Adjusted Trial Balance April 30 Account Title Debit Credit 1,600 600 2.550 30,000 S 500 350 OOO 73,000 101: 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 revenue 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 1,800 500 2,750 150 1,500 1,100 350 1.250 44,150 IS IS 73,850
