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On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the companys first month. April 2 Nozomi invested

On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the companys first month.

April 2 Nozomi invested $30,000 cash and computer equipment worth $20,000 in the company in exchange for its common stock.
April 3 The company rented furnished office space by paying $1,800 cash for the first month's (April) rent.
April 4 The company purchased $1,000 of office supplies for cash.
April 10 The company paid $2,400 cash for a 12-month insurance policy. Coverage begins on April 11.
April 14 The company paid $1,600 cash for two weeks' salaries earned by employees.
April 24 The company collected $8,000 cash for commissions revenue.
April 28 The company paid $1,600 cash for two weeks' salaries earned by employees.
April 29 The company paid $350 cash for minor repairs to computer equipment.
April 30 The company paid $750 cash for this month's telephone bill.
April 30 The company paid $1,500 cash in dividends.

The company's chart of accounts follows.

101 Cash 403 Commissions Revenue
106 Accounts Receivable 612 Depreciation ExpenseComputer Equipment
124 Office Supplies 622 Salaries Expense
128 Prepaid Insurance 637 Insurance Expense
167 Computer Equipment 640 Rent Expense
168 Accumulated DepreciationComputer Equipment 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 to prepare adjusting entries:

  1. Prepaid insurance of $133 expired this month.
  2. At the end of the month, $600 of office supplies are still available.
  3. This months depreciation on computer equipment is $500.
  4. Employees earned $420 of unpaid and unrecorded salaries as of month-end.
  5. The company earned $1,750 of commissions revenue that is not yet recorded at month-end.

5a. Using adjusted account balances from Requirement 6B GL tab, prepare an adjusted trial balance as of April 30.

6a. Prepare journal entries to close the temporary accounts and then post to Requirement 6B GL tab, using April 30 Close as the date. 6b. Post the journal entries to the ledger. 7. Prepare a post-closing trial balance.

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