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 $42,000 cash and computer equipment worth $25,000 in the company in exchange for common stock. 2 The company rented furnished office space by paying $2,900 cash for the first month's (April) rent. 3 The company purchased $1,300 of office supplies for cash. 10 The company paid $2,500 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. 14 The company paid $800 cash for two weeks' salaries earned by employees. 24 The company collected $15, see cash for comissions earned. 28 The company paid $800 cash for two weeks' salaries earned by employees. 29 The company paid $35e cash for minor repairs to the company's computer. 30 The company paid $1,300 cash for this month's telephone bill. 30 The company paid $2,100 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. 289 Salaries Payable 307 Common Stock 318 Retained Earnings 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 901 Income Summary Use the following information: a. Prepaid insurance of $139 has expired this month. b. At the end of the month, $500 of office supplies are still available. c. This month's depreciation on the computer equipment is $400. d. Employees earned $520 of unpaid and unrecorded salaries as of month-end. e. The company earned $1,950 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 eing trial be Post the journal entries to the ledger. General Ledger accounts 101: Cash Date 106: Accounts Receivable Debit Credit Debit Credit Balance Date Balance 124: Office Supplies 128: Prepaid Insurance bie 124: Office Supplies Debit Credit 128: Prepaid Insurance Debit Credit Date Balance Date Balance 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 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 Expense-Computer Equipment Date Debit Credit Balance Date Balance 405: Commissions Eamed Debit Credit 612: Depreciation Expense-Computer 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 640: Rent Expense Debit Credit 650: Office Supplies Expense Debit Credit Date Balance Date Balance 684: Repairs Expense Debit Credit 6BB: Telephone Expense Debit Credit Date Balance Balance Date 901: Income Summary Debit Credit Date Balance 901: Income Summary Debit Credit Balance Date
