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 $30,000 cash and computer equipment worth $35,000 in the company in exchange for common stock. 2 The company rented furnished office space by paying $1,500 cash for the first month's (April) rent. 3 The company purchased $1,100 of office supplies for cash. 10 The company paid $2,100 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. 14 The company paid $1,400 cash for two weeks' salaries earned by employees. 24 The company collected $16,000 cash for commissions earned. 28 The company paid $1,400 cash for two weeks' salaries earned by employees. 29 The company paid $300 cash for minor repairs to the company's computer. 30 The company paid $1,350 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 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 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: Donna R$147 Robiente Use the following information: a. Prepaid insurance of $117 has expired this month. b. At the end of the month, $400 of office supplies are still available. c. This month's depreciation on the computer equipment is $300. d. Employees earned $340 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. Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Adj Entries Req 4 Adj Trial Bal Req 5A Req 5B Req 5C Req 6A Req 1 and 2 Reg 3 Req 4 Adj Entries Req 4 Ad) Trial Bal Reg SA Req 5B Reg 5C Reg 6A Reg 6B GL Reg 7 Post the journal entries to the ledger General Ledger accounts 101: Cash Debit 106: Accounts Receivable Debit Credit Date Credit Balance Date Balance 124: Office Supplies Debit Credit Date Balance 128: Prepaid Insurance Debit Credit Dato Balance 167: Computer Equipment Debit Credit Dato 168: Accumulated Depreciation--Computer equipment Date Debit Credit Balance Balance 209: Salarios 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 Eamed Debit Credit Date 612: Depreciation Expense-Computer Equipment Date Debit Credit Balance Balance 622: Salaries Expense Debit Credit Date 637: Insurance Expense Debit Credit Balance Date Balance 640: Rent Expense 650: Office Supplies Expense 684: Repairs Expense Debit Credit 688: Telephone Expense Debit Credit Date Balance Date Balance 901: Income Summary Debit Credit Date Balance Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30. ADVENTURE TRAVEL Unadjusted 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 0 $ 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 $ 0 $ 0 Req 1 and 2 Reg 3 Req 4 Adj Entries Req 4 Ad) Trial Bal Req SA Req 5B Reg 5C Req 6A Reg 6B GL Reg 7 Prepare the income statement for the month of April 30. ADVENTURE TRAVEL Income Statement For Month Ended April 30 Revenues Expenses: Total expenses 0 $ 0 Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Req 4 Adj Req 4 Adj Entries Req SA Trial Bal Req 5B Reg 5C Req 6A Req 6B GL Reg 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 $ 0 Retained earnings, April 30 $ 0 Req 1 and 2 Reg 3 Req 4 Adj Entries Req 4 Ad) Trial Bal Red SA Reg 5B Req SC Reg 6A Req 6B GL Reg 7 Prepare the balance sheet at April 30. ADVENTURE TRAVEL Balance Sheet April 30 0 Total assets $ 0 Total equity Total liabilities and equity 0 $ 0 Req 1 and 2 Req 4 Adj Entries Reg 3 Req 4 Adj Trial Bal Reg SA Reg 5B Reg 5C Reg 6A Reg 6B GL Req 7 Prepare journal entries to close the temporary accounts and then post to Req 6B General Ledger, using April 30 Close as the date. View transaction list Journal entry worksheet Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Ad Reg 4 Ad) Entries Trial Bal Reg SA Reg 5B Reg 5C Reg 6A Reg 6B GL Req 7 Prepare a post-closing trial balance. ADVENTURE TRAVEL Post-Closing Trial Balance April 30 Account Title Debit Credit Totals $ 0 $ 0
