On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the companys first month.

April		1		Nozomi invested $49,000 cash and computer equipment worth $35,000 in the company in exchange for common stock.
		2		The company rented furnished office space by paying $2,800 cash for the first months (April) rent.
		3		The company purchased $1,500 of office supplies for cash.
		10		The company paid $3,000 cash for the premium on a 12-month 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 $15,500 cash for commissions earned.
		28		The company paid $1,600 cash for two weeks' salaries earned by employees.
		29		The company paid $550 cash for minor repairs to the company's computer.
		30		The company paid $1,500 cash for this month's telephone bill.
		30		The company paid $1,900 cash in dividends.

The company's chart of accounts follows:

101	Cash	405	Commissions Earned
106	Accounts Receivable	612	Depreciation ExpenseComputer Equip.
124	Office Supplies	622	Salaries Expense
128	Prepaid Insurance	637	Insurance Expense
167	Computer Equipment	640	Rent Expense
168	Accumulated DepreciationComputer Equip.	650	Office Supplies Expense
209	Salaries Payable	684	Repairs Expense
307	Common Stock	688	Telephone Expense
318	Retained Earnings	901	Income Summary
319	Dividends

Use the following information:

1. Prepaid insurance of $167 has expired this month.
2. At the end of the month, $700 of office supplies are still available.
3. This months depreciation on the computer equipment is $300.
4. Employees earned $600 of unpaid and unrecorded salaries as of month-end.
5. The company earned $2,200 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.

Options for Account title

• 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 earned
• 612: Depreciation expense Computer equip.
• 622: Salaries expense
• 637: Insurance expense
• 640: Rent expense
• 650: Office supplies expense
• 684: Repairs expense
• 688: Telephone expense

Continued

Journalize the adjusting entries for the month, and then post to the ledger on Req 6B tab, using April 30 Adj. as the date. (Do not round intermediate calculations and round the final answers to nearest whole number.)

2)b) At the end of the month, $700 of office supplies are still available.

3) c) This months depreciation on the computer equipment is $300.

4) d) Employees earned $600 of unpaid and unrecorded salaries as of month-end

5) e) The company earned $2,200 of commissions that are not yet billed at month-end.

Options for General Journal for every table 1 through 5

• 101: Cash
• 106: Accounts receivable
• 124: Office supplies
• 128: Prepaid insurance
• 167: Computer equipment
• 168: Accumulated depreciationComputer equip.
• 209: Salaries payable
• 307: Common stock
• 318: Retained earnings
• 319: Dividends
• 405: Commissions earned
• 612: Depreciation expenseComputer equip.
• 622: Salaries expense
• 637: Insurance expense
• 640: Rent expense
• 650: Office supplies expense
• 684: Repairs expense
• 688: Telephone expense
• 901: Income summary

Continued

Prepare the income statement for the month of April 30.

Options for Revenue and Expenses

• 01: Cash
• 106: Accounts receivable
• 124: Office supplies
• 128: Prepaid insurance
• 167: Computer equipment
• 168: Accumulated depreciationcomputer equip.
• 209: Salaries payable
• 307: Common stock
• 319: Dividends
• 405: Commissions earned
• 612: Depreciation expenseComputer equip.
• 622: Salaries expense
• 637: Insurance expense
• 640: Rent expense
• 650: Office supplies expense
• 684: Repairs expense
• 688: Telephone expense
• 901: Income summary

Options for both the Retained Earnings

• Add: Net income
• Less: Net income

Prepare the balance sheet at April 30.

Continued

Options for the top box

• Assets
• Equity
• Expense
• Liabilities
• Revenue

Options for the left column

• 101: Cash
• 106: Accounts receivable
• 124: Office supplies
• 128: Prepaid insurance
• 209: Salaries payable
• 307: Common stock
• 318: Retained earnings
• 319: Dividends
• 405: Commissions earned
• 612: Depreciation expenseComputer equip.
• 622: Salaries expense
• 637: Insurance expense
• 640: Rent expense
• 650: Office supplies expense
• 684: Repairs expense
• 688: Telephone expense
• 901: Income summary

Prepare journal entries to close the temporary accounts and then post to Req 6B General Ledger, using April 30 Close as the date.

2) April 30) Record the entry to close the expense account(s).

3) April 30) Record the entry to close the income summary.

4) April 30) Record the entry to close the dividends account.

Options for the General journal for every table 1 through 4

• 101: Cash
• 106: Accounts receivable
• 124: Office supplies
• 128: Prepaid insurance
• 167: Computer equipment
• 168: Accumulated depreciationComputer equip.
• 209: Salaries payable
• 307: Common stock
• 318: Retained earnings
• 319: Dividends
• 405: Commissions earned
• 612: Depreciation expenseComputer equip.
• 622: Salaries expense
• 637: Insurance expense
• 640: Rent expense
• 650: Office supplies expense
• 684: Repairs expense
• 688: Telephone expense
• 901: Income summary

Options for the dates for every table

• April 1
• April 2
• April 3
• April 10
• April 14
• April 24
• April 28
• April 29
• April 30
• April 30 Adj.
• April 30 Close

Options for the Account title

• : 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 earned
• 612: Depreciation expense Computer equip.
• 622: Salaries expense
• 637: Insurance expense
• 640: Rent expense
• 650: Office supplies expense
• 684: Repairs expense
• 688: Telephone expense

ADVENTURE TRAVEL Post-Closing Trial Balance April 30 Account Title Debit Credit Totals Req 1 and 2 Reg 3 Req 4 Adj Entries Req 4 Adj Trial Bal Req 5A Req 5B Req 5C Req 6A Req 6B GL Req 7 Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30. Debit Credit ADVENTURE TRAVEL Unadjusted Trial Balance April 30 Account Title 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 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 Journal entry worksheet Prepaid insurance of $167 has expired this month. Note: Enter debits before credits. Transaction General Journal Debit Credit Debit Credit ADVENTURE TRAVEL Adjusted Trial Balance April 30 Account Title 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 earned 612: Depreciation expense-Computer equipment 622: Salaries expense 1837. Incurance avnance 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 Revenues: Expenses: Total expenses Req 1 and 2 Req 3 Req 4 Adj Entries Req 4 Adj Trial Bal Req 5A Req 5B Req 5C Req 6A Req 6B GL Req 7 Prepare the statement of retained earnings for the month of April 30. (Amounts to be deducted should be entered with a minus sign.) ADVENTURE TRAVEL Statement of Retained Earnings For Month Ended April 30 Retained earnings, April 1 Retained earnings, April 30 Total equity Total liabilities and equity Journal entry worksheet 2 3 4 Record the entry to close the revenue account(s). Note: Enter debits before credits. Date General Journal Debit Credit April 30 General Ledger accounts 101: Cash Debit 106: Accounts Receivable Debit Credit Date Credit Balance Date Balance 124: Office Supplies Debit Credit 128: Prepaid Insurance Debit Credit Date Balance Date Balance 167: Computer Equipment Debit Credit 168: Accumulated DepreciationComputer equipment Debit Credit Balance Date Balance Date 209: Salaries Payable Debit Credit 307: Common Stock Debit Credit Date Balance Date Balance 318: Retained Earnings Debit Credit 319: Dividends Debit Credit Date Balance Date Balance 405: Commissions Earned Debit Credit 612: Depreciation ExpenseComputer Equipment Date Debit Credit Balance Date Balance 622: Salaries Expense Debit Credit 637: Insurance Expense Debit Credit Date Balance Date Balance 640: Rent Expense Debit Credit 650: Office Supplies Expense Debit Credit Date Balance Date Balance 684: Repairs Expense Debit Credit 688: Telephone Expense Debit Credit Date Balance Date Balance Date 901: Income Summary Debit Credit Balance ADVENTURE TRAVEL Post-Closing Trial Balance April 30 Account Title Debit Credit Totals