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 $35,000 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 $1,500 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 $16,000 cash for commissions earned.
		28		The company paid $1,100 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 $1,550 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	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 $128 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 $500.
4. Employees earned $440 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.

6 April 24 16,000 Cash Commissions earned 16,000 7 April 28 1,100 Commissions earned Cash 1,100 8 April 29 400 Repairs expense Cash 400 Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Req 4 Adj Req 4 Adj Entries Trial Bal Reg 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 $ Add: Net income 0 10,282 10,282 2,000 8,282 Less: Dividends Retained earnings, April 30 $ Date Balance Date 124: Office Supplies Debit Credit 1,500 700 128: Prepaid Insurance Debit Credit 2,300 128 April 3 April 3 1,500 800 April 10 April 10 Balance 2,300 2,172 Date 167: Computer Equipment Debit Credit 25,000 Balance 168: Accumulated Depreciation Computer equipment Date Debit Credit Balance April 30 500 500 April 1 25,000 209: Salaries Payable Debit Credit 440 Date April 14 Balance Date April 1 307: Common Stock Debit Credit 60,000 Balance 60,000 440 318: Retained Earnings Debit Credit 2,000 319: Dividends Debit Credit Date Balance Date Balance 2,000 April 24 (2,000) April 30 2,000 Date April 24 April 30 Close April 30 Close 405: Commissions Earned Debit Credit 16,000 18,200 x 2,200 Balance 16,000 (2,200) 0 612: Depreciation Expense-Computer Equipment Date Debit Credit Balance April 1 X 500 500 April 30 Close 500 0 622: Salaries Expense Debit Credit 637: Insurance Expense Debit Credit Date Date Balance Balance 1,100 April 30 Close 128 128 X o April 14 April 28 April 30 Close 1,100 1,100 440 X 2,200 2,640 Date 640: Rent Expense Debit Credit 2,000 Balance Date 650: Office Supplies Expense Debit Credit 700 > Balance April 2 . 2,000 April 30 Close 700 684: Repairs Expense Debit Credit 688: Telephone Expense Debit Credit Date Balance Date Balance 901: Income Summary Debit Credit Date Balance