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.

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.) View transaction list View journal entry worksheet X No Transaction General Journal Debit Credit 1 a. 128 Insurance expense Prepaid insurance 128 2 b. 700 Office supplies expense Office supplies 700 3 C. 500 Depreciation expense-Computer equip. Accumulated depreciationComputer equip. 500 d. 440 Salaries expense Salaries payable 440 5 e. 2,200 Accounts receivable Commissions earned 2,200 Using adjusted account balances from Requirement 6b, prepare an adjusted trial balance as of April 30. Debit Credit 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 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 $ Prepare the income statement for the month of April 30. ADVENTURE TRAVEL Income Statement For Month Ended April 30 Revenues: Commissions earned 2,000 2,200 400 Expenses: Rent expense Salaries expense Repairs expense Telephone expense Insurance expense Office supplies expense Depreciation expense-Computer equip. 1,550 2,300 1,500 500 Total expenses Net income 10,450 (10,450) 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 0 Add: Dividends Retained earnings, April 30 Req 1 and 2 Req3 Req 4 Adj Entries Req 4 Adj Trial Bal Req 5A Req 5B Req 5C Reg 6A Req 6B GL Req 7 Prepare the balance sheet at April 30. ADVENTURE TRAVEL Balance Sheet April 30 Total assets $ 0 Total equity Total liabilities and equity $ 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 View journal entry worksheet :......: No Date General Journal Debit Credit 1 April 30 Commissions earned Income summary 2 April 30 7,478 500 2,200 128 Income summary Depreciation expense-Computer equip. Salaries expense Insurance expense Rent expense Office supplies expense Repairs expense Telephone expense 2,000 700 400 1,550 3 April 30 Income summary Retained earnings 4 April 30 2,000 Retained earnings Dividends 2,000 Post the journal entries to the ledger. General Ledger accounts 101: Cash Debit Date Credit Date April 30 Adj. 106: Accounts Receivable Debit Credit 2,200 Balance 2,200 35,000 April 1 April 2 April 3 April 10 April 14 April 28 April 29 April 30 April 30 April 24 2,000 1,500 2,300 1,100 1,100 400 Balance 35,000 33,000 31,500 29,200 28,100 27,000 26,600 25,050 23,050 39,050 1,550 2,000 16,000 Date Balance 124: Office Supplies Debit Credit 1,500 700 Balance 128: Prepaid Insurance Debit Credit 2,300 April 3 April 30 Date April 10 April 30 2,300 1,500 800 128 2,172 167: Computer Equipment 168: Accumulated DepreciationComputer equipment Prepare a post-closing trial balance. Debit Credit 13,950 ADVENTURE TRAVEL Post-Closing Trial Balance April 30 Account Title Cash $ Accounts receivable Office supplies Prepaid insurance Computer equipment Accumulated depreciation - Computer equip. Salaries payable Common stock Retained earnings 1,500 2,300 25,000 $ 400 1,100 60,000 Totals $ 42,750 $ 61,500 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 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 $ 13,950 1,500 2,300 25,000 $ 60,000 101: 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 2,000 16,000 2,200 2,000 400 1,550 50,900 $ $ 76,000