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On April 1,2015, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month. April 1. Nozomi invested

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On April 1,2015, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month. April 1. Nozomi invested $49,000 cash and computer equipment worth $35,000 in the company in exchange for common stock 2 The company rented furnished office space by paying $2,400 cash for the first month's April) rent 3 The company purchased $1,800 of office supplies for cash. 10 The company paid $2,500 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 $9,500 cash on commissions from airlines on tickets obtained for 28 The company paid $1,100 cash for two weeks' salaries earned by employees. 29 The company paid $350 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 $2,400 cash in dividends The company's chart of accounts follows 405 Commissions Earned 101 Cash 106 Accounts Receivable 124 Office Supplies 128 Prepaid Insurance 167 Computer Equipment 622 Salaries Expense 637 Insurance Expense 640 Rent Expense 650 Office Supplies Expense 684 Repairs Expense 688 Telephone Expense 901 Income Summary 168 Accumulated Depreciation-Computer Equip puter Equ ip. 209 Salaries Payable 307 Common Stock 318 Retained Earnings 319 Dividends Use the following information in Part 4 a. Two-thirds (or $139) of one month's insurance coverage has expired. b. At the end of the month, $700 of office supplies are still available. c. This month's depreciation on the computer equipment is $400 d. Employees earned $550 of unpaid and unrecorded salaries as of month-end. e. The company earned $1,800 of commissions that are not yet billed at month-end. 10

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