Problem 3-5A Applying the accounting cycle LO P1, P2, P3, P4, P5, Pb, P7, P8 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 $30,000 cash and computer equipment worth $20,000 in the company in exchange for common stock. 2 The company rented furnished office space by paying $1,800 cash for the first month's (April) rent. 3 The company purchased $1,000 of office supplies for cash. 10 The company paid $2,488 cash for the premium on a 12 month insurance policy. Coverage begins on April 11. 14 The company paid 51,600 cash for two weeks' salaries earned by employees. 24 The company collected $8,000 cash for commissions earned. 28 The company paid $1,600 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 $750 cash for this month's telephone bill. 30 The company paid $1,500 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 65e Office Supplies Expense 684 Repairs Expense 688 Telephone Expense 901 Income Summary Use the following information a. Prepaid insurance of $133 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. mployees earned $420 of unpaid and unrecorded salaries as of month-end e. The company earned $1750 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 uneamed items in balance sheet accounts Ive Problem submitted 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 ond prepare the adjusted trial balance 5a. Prepare the income statement for the month of Apni 30 5b. Prepare the statement of retained earnings for the month of April 30 5c. Prepare the balance sheet at April 30 60. 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 d Complete this question by entering your answers in the tabs below, Req7 Reg 5C ReqSA Reg Req 68 GL Req 4 Adj Entries Req 4 Ady Trial Bal Reg SB Reg 3 Red 1 and 2 Post the journal entries to the ledger General Ledger accounts 101: Cash Debit 30,000 108: Accounts receivable Debit Credit 1.750 Date April 30 Ad Balante 1.750 Credit 1 800 1000 2.400 1600 Date April 1 April 2 April April 10 April 14 April 24 April 28 Apr 29 April 30 April 30 Close @ooooooooo Balance 30 000 28.200 27 200 24 800 23200 31,200 29 800 29 250 28.500 27.000 8000 1 500 350 750 1,500 128. Prepaid insurance Debilt Credit Balance Date 124: Office supplies Debit Credit Balance Date Prey Nex 1 of 1 !!! M 43/5 Problem 124. Office supplies Debit Credit 1,000 400 Balance 1000 Date Agri 3 Apni 30 Ad Date April 10 April 30 A 126: Prepaid insurance Debit Credit 2.400 131 Balance 2.400 2287 500 Date 168: Accumulated depreciation Computer equip Debit Credit Balance 500 500 167Computer equipment Debit Credit 20,000 Date Ani 1 Balance 20,000 April 30 A Date 301 Salnes payable Debit Credit 420 307: Common stock Debit Credit 50 000 Balance 60,000 Balance 420 April Apr 30 Close 31 Retained earnings Debt CH 310: Dividends Debe Credit 1500 Date Apr 30 Balance 100 Balance Date O oo 612: Depreciation expense-Computer equip Debit Credit Balance 500 500 Date 405: Commissions samed Deba Cred 8000 . Balance 3.000 April OC April 24 OG Prey Nad 1 of 1 !!! Suomi 43/50 sive Problem Date on 24 April 30 CM 405 Commissions earned Debit Credit 8 000 1.750 OOO 612: Depreciation expense-Computer equip Dane Debit Credit Balance April 500 500 3 Balance 3.000 9.750 dea Date Date A 30 Balance 133 697, Insurance expense Debit Credit 133 3 692- Salles experts Debit Credit 1600 1600 420 @ OOOO Balance 1600 3.200 2,620 OOO A2 April 20 650 Omice supplies expense Deb Credit ces 540 Rent expense Debit Credit 1.800 Date 400 Date Apel 1 Balance 1900 April BO oo 750 68 Telephone experie Debit Crede 750 664: Repairs expertise De Crest 350 Date A 30 Balance 350 Dan Art 29 Oo oo O 01: Income Balance De Prev Next w SI 688: 684: Repairs expense Debit Credit 350 De Date April 29 Balance 350 Date April 30 X 901: Income summary Debit Credit Date Balance x x x x