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 $48,000 cash and computer equipment worth $25,000 in the company in exchange for common stock. 2 The company rented furnished office space by paying $2,000 cash for the first months (April) rent. 3 The company purchased $1,300 of office supplies for cash. 10 The company paid $2,900 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. 14 The company paid $1,300 cash for two weeks' salaries earned by employees. 24 The company collected $14,500 cash for commissions earned. 28 The company paid $1,300 cash for two weeks' salaries earned by employees. 29 The company paid $400 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 $1,900 cash in dividends.

The company's chart of accounts follows:

101Cash405Commissions Earned106Accounts Receivable612Depreciation ExpenseComputer Equip.124Office Supplies622Salaries Expense128Prepaid Insurance637Insurance Expense167Computer Equipment640Rent Expense168Accumulated DepreciationComputer Equip.650Office Supplies Expense209Salaries Payable684Repairs Expense307Common Stock688Telephone Expense318Retained Earnings901Income Summary319Dividends

Use the following information:

1. Prepaid insurance of $161 has expired this month.
2. At the end of the month, $800 of office supplies are still available.
3. This months depreciation on the computer equipment is $400.
4. Employees earned $430 of unpaid and unrecorded salaries as of month-end.
5. The company earned $1,850 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.