Problem 3-6A Applying the accounting cycle LO P1, P2, P3, P4, P The following information applies to the questions displayed below.] 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 $38,000 cash and computer equipment worth $25,000 in the company in exchange for common stock. 2 The company rented furnished office space by paying $2,300 cash for the first month's (April) rent. 3 The company purchased $1,800 of office supplies for cash 10 The company paid $2,200 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 $8,000 cash on commissions from airlines on tickets obtained for customers 28 The company paid $1,200 cash for two weeks' salaries earned by employees. 29 The company paid $300 cash for minor repairs to the company's computer. 30 The company paid $1,050 cash for this month's telephone bill 30 The company paid $2,100 cash in dividends The company's chart of accounts follows 01 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 in Part 4 a. Two-thirds (or $122) of one month's insurance coverage has expired 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 $380 of unpaid and unrecorded salaries as of month-end e. The company earned $2,350 of commissions that are not yet billed at month-end Problem 3-6A Part 1& 2 Required 1. The general ledger and all the necessary accounts are provided in Part 6.2. Post all journal entries adjusting entries and closing entries to the general ledger given in Part 6.2 2. Prepare journal entries to record the transactions for April and post them to the ledger accounts in Part 6.2. The company records prepaid and unearned items in balance sheet accounts View transaction list Journal entry worksheet 2 4 6 8 9 Nozomi invested $38,000 cash and computer equipment worth $25,000 in the company in exchange for common stock Note: Enter debits before credits Date General Journal Debit Credit April 01 Record entry Clear entry View general journal Problem 3-6A Part 3 3. Using account balances from part 6.2, prepare an unadjusted trial balance as of April 30 ADVENTURE TRAVEL Unadjusted Trial Balance April 30, 2015 Account Title Debit Credit 101: Caslh 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 Problem 3-6A Part 4 4. Journalize the adjusting entries for the month and prepare the adjusted trial balance. (Do not round intermediate calculations.) View transaction list Journal entry worksheet 2 4 5 Two-thirds (or $122) of one month's insurance coverage has expired. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general journal ADVENTURE TRAVEL Adjusted Trial Balance April 30, 2015 Account Title Debit Credit 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 Problem 3-6A Part 5 5.1 Prepare the income statement for the month of April 30, 2015. ADVENTURE TRAVEL Income Statement For Month Ended April 30, 2015 Revenues: Expenses: Total expenses 0 6.2 Post the journal entries to the ledger. General Ledger Acounts Accounts Receivable Cash Date Debit Credit Balance Date Debit Credit Balance Office Supplies Debit Prepaid Insurance Debit Date Credit Balance Date Credit Balance Computer Equipment Accumulated Depreciation-Computer Equipment Date Debit Credit Balance Date Debit Credit Balance Salaries Payable Debit Common Stock Date Credit Balance Date Debit Credit Balance Retained Earnings Dividend:s Date Debit Credit Balance Date Debit Credit Balance Commissions Earned Depreciation Expense-Computer Equipment Date Debit Credit Balance Date Debit Credit Balance Salaries Expense Insurance Expense Date Debit Credit Balance Date Debit Credit Balance Rent Expense Office Supplies Expense Date Debit Credit Balance Date Debit Credit Balance Repairs Expense Telephone Expense Date Debit Credit Balance Date Debit Credit Balance Income Summary Date Debit Credit Balance