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 $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 $1,800 cash for the first month's (April) rent. 3 The company purchased $1,800 of office supplies for cash 10 The company paid $2,300 cash for the premium on a 12 month insurance policy. Coverage begins on April 11. 14 The company paid $1,100 cash for two weeks' salaries earned by employees. 24 The company collected $13,000 cash for comissions earned. 28 The company paid $1,100 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 $1,150 cash for this month's telephone bill. 30 The company paid $2,000 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 Comissions 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 901 Income Summary LU Stock 318 Retained Earnings 319 Dividends 684 Repairs Expense 688 Telephone Expense 901 Income Summary Use the following information: a. Prepaid Insurance of $128 has expired this month. b. At the end of the month, $800 of office supplies are still available. c. This month's depreciation on the computer equipment is $600. d. Employees earned $320 of unpaid and unrecorded salaries as of month-end e. The company earned $2,450 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. ADVENTURE TRAVEL Adjusted Trial Balance April 30 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 Total General Ledger accounts 101: Cash Debit Date Credit Balance 106: Accounts Receivable Debit Credit Date Balance 124: Office Supplies Debit Credit 128: Prepaid Insurance Debit Credit Date Balance Data Balance mputer equipment 167: Computer Equipment Debit Credit 168: Accumulated Depreciation Computer 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 Date 319: Dividends Debit Credit Balance Date Balance 405: Commissions Eamed Debit Credit Date 612: Depreciation Expense-Computer Equipment Date Debit Credit Balance Balance 622: Salaries Expense Debit Credit 637: Insurance Expense Debit Credit Date Balance Date Balance 640: Rent Expense Debit Credit 660: Office Supplies Expense Debit Credit Date Balance Date Balance 684: Repairs Expense Debit Credit 688: Telephone Expense Debit Credit Date Balance Date Balance 901: Income Summary Debit Credit Date Balance
