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 $46,000 cash and computer equipment worth $35,000 in the company in exchange for common stock. 2 The company rented furnished office space by paying $2,800 cash for the first month's (April) rent. 3 The company purchased $1,900 of office supplies for cash. 10 The company paid $2,800 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. 14 The company paid $1,200 cash for two weeks' salaries earned by employees. 24 The company collected $16,000 cash for commissions earned 28 The company paid $1,200 cash for two weeks' salaries earned by employees. he company paid $400 cash for minor repairs to the company's computer. 30 The company paid $800 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. 209 Salaries Payable 307 Common Stock 318 Retained Earnings 319 Dividends 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 $156 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 $600. d. Employees earned $550 of unpaid and unrecorded salaries as of month-end. e. The company earned $1,900 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 Req3 Req 4 Adj Entries Req 4 Adj Trial Bal Req 5A Req 5B Req 5C Req 6A Req 6B GL Req 7 Req 1 and 2 Req 4 Adj Entries Req 4 Adj Trial Bal Req 5A Req 5B Req 5C Req 6A Req 6B GL Req 7 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. No Date General Journal Credit 1 April 01 Cash Computer equipment Debit 46,000 35,000 April 02 2,800 Rent expense Cash 2,800 April 03 1,900 Office supplies Cash 1,900 April 10 2,800 Prepaid insurance Cash 2,800 April 14 1,200 Salaries expense Cash 1,200 OOO OO OO OO OO OO 00 00 00 April 24 16,000 Cash Commissions earned 16,000 April 28 1,200 Salaries expense Cash 1,200 April 29 400 Repairs expense Cash 400 April 30 April 30 800 Telephone expense Cash 800 10 April 30 April Su 2,100 Dividends Cash 2,100 Req 1 and 2 Req3 Reg 4 Adj Entries --------------- Rederiet er en Req 4 Adj Trial Bal Req 5A reg sa Req SB Req 5B Req 5C Req 6A Req 6B GL Req 7 Journalize the adjusting entries for the month, and then post to the ledger on Req 6B tab, using April 30 Adj. as the date. (Do not round intermediate calculations and round the final answers to nearest whole number.) No Transaction General Journal Credit Debit 156 a. Insurance expense Prepaid insurance 156 b. 1,400 Office supplies expense Office supplies 1,400 L c. 600 Depreciation expenseComputer equip. Accumulated depreciationComputer equip. 600 d. Salaries expense 550 Salaries payable 550 Accounts receivable 1,900 Commissions earned 1,900 Req 1 and 2 Req3 Req 4 Adj Entries Req 4 Adj Trial Bal Req 5A Req 5B Reg 5C Req 6A Req 6B GL Req 7 Using adjusted account balances from Requirement 6b, prepare an adjusted trial balance as of April 30. Credit Debit 48,800 $ ADVENTURE TRAVEL Adjusted Trial Balance April 30 Account Title 101: Cash 106: Accounts receivable 124: Office supplies 128: Prepaid insurance 167: Computer equipment 168: Accumulated depreciationComputer 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 $ 48,800 $ Req 1 and 2 Req3 Req 4 Adj Entries Req 4 Adj Trial Bal Req 5A Req 5B Req 5C Req 6A Req 6B GL Req 7 Prepare the income statement for the month of April 30. ADVENTURE TRAVEL Income Statement For Month Ended April 30 Revenues: Commissions earned ~ Expenses: Depreciation expense--Computer equip. Salaries expense Insurance expense Rent expense Office supplies expense Telephone expense Repairs expense 2,800 800 400 Total expenses Net income 4,000 (4,000) $ Req 1 and 2 Req 3 Req 4 Adj Entries Req 4 Adj Trial Bal Req 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 0 Retained earnings, April 30 $ 0 Req 1 and 2 Req 3 Req 4 Adj Entries Req 4 Adj Trial Bal Req 5A Req 5B Req 5C Req 6A Req 6B GL Req 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 UUUUUUUUUUUUUU Req 1 and 2 Req 3 Req 4 Adj Entries Reg 4 Adj Trial Bal Req 5A Req 5B Req 50 Req 6A Req 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. No Date General Journal Debit Credit Req 1 and 2 Req3 Req 4 Adj Entries Req 4 Adj Trial Bal Req 5A Req 5B Req 5C Req 6A Req 6B GL Req 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 128: Prepaid Insurance Debit Credit Date Balance Date Balance 167: Computer Equipment Debit Credit te Balance 168: Accumulated DepreciationComputer equipment Date Debit Credit Balance Date Balance 209: Salaries Payable Debit Credit Date redie Balance 307: Common Stock Debit Credit Balance Date 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 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 684: Repairs Expense Debit Credit 688: Telephone Expense Debit Credit Date Balance Date Balance 901: Income Summary Debit Credit Date Balance ( Req 6A Req 7 > Req 1 and 2 Reg 3 Reg 4 Adj Entries Req 4 Adj Trial Bal Req 5A Req 5B Req 5C Req 6A Req 6B GL Reg 7 Prepare a post-closing trial balance. ADVENTURE TRAVEL Post-Closing Trial Balance April 30 Account Title Debit Credit Totals