PLEASE HELP
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 $35,000 cash and computer equipment worth $30,000 in the company in exchange for common stock. 2 The company rented furnished office space by paying $1,700 cash for the first month's (April) rent. 3 The company purchased $1,700 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 $17,500 cash for commissions earned. 28 The company paid $1,200 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 $1,300 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 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, $600 of office supplies are still available. C. This month's depreciation on the computer equipment is $500. d. Employees earned $470 of unpaid and unrecorded salaries as of month-end. e. The company earned $2,100 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. ADVENTURE TRAVEL Unadjusted Trial Balance April 30 Account Title Debit Credit 101: Cash $ 40,250 106: Accounts receivable 0 1,700 2,800 30,000 124: Office supplies 128: Prepaid insurance 167: Computer equipment 168: Accumulated depreciationComputer equipment 209: Salaries payable 307: Common stock 318: Retained earnings 0 0 $ 65,000 0 319: Dividends 2,000 17,500 405: Commissions earned 612: Depreciation expenseComputer equipment 622: Salaries expense 0 1,200 637: Insurance expense 0 1,700 0 640: Rent expense 650: Office supplies expense 684: Repairs expense 688: Telephone expense 350 1,300 81,300 Total $ $ 82,500 No Transaction General Journal Debit Credit 1 a. Insurance expense 156 Prepaid insurance 156 2 b. 1,100 Office supplies expense Office supplies 1,100 3 C. 500 Depreciation expenseComputer equip. Accumulated depreciationComputer equip. 500 4 d. 470 Salaries expense Salaries payable 470 5 e. Accounts receivable 2,100 Commissions earned 2,100 Req3 Req 4 Adj Trial Bal ADVENTURE TRAVEL Adjusted Trial Balance April 30 Account Title Debit Credit 101: Cash $ 106: Accounts receivable 40,250 2,100 600 2,644 124: Office supplies 128: Prepaid insurance 167: Computer equipment 168: Accumulated depreciationComputer equipment 209: Salaries payable 30,000 $ 500 470 307: Common stock 65,000 0 2,000 19,600 500 1,670 318: 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 156 1,700 1,100 350 1,300 84,370 $ $ 85,570 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 minus sign.). ADVENTURE TRAVEL Statement of Retained Earnings For Month Ended April 30 Retained earnings, April 1 $ 0 0 Retained earnings, April 30 $ 0
