Problem 3-6A Applying the accounting cycle LO PL, P2 P3, P4, P5 On April 1. 2017, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during first month. April 1 Nozomi invested $36,000 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 $1,300 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 $1,800 cash for two weeks' salaries earned by employees. 24 The company collected $21,500 cash on commissions from airlines on tickets obtained for customers 28 The company paid $1,800 cash for two weeks' salaries earned by employees. 29 The company paid $450 cash for minor repairs to the company's computer. 30 The company paid $900 cash for this month's telephone bill. 30 The company paid $2,000 cash in dividends. The company's chart of accounts follows 405 Commissions Eaned 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 101 Cash 106 Accounts Receivable 124 Office Supplies 128 Prepaid Insurance 167 Computer Equipment 168 Accumulated Equip 209 Salaries Payable 307 Common Stock 318 Retained Earnings 319 Dividends Use the following information: a. Two-thirds (or $128) 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 $500. d. Employees earned $320 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 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 and post the adjusting entries for the month and prepare the adjusted trial balance. 5a. Prepare the income statement for the month of April 30, 2017 Sb. Prepare the statement of retained earnings for the month of April 30, 2017. 5c. Prepare the balance sheet at April 30, 2017 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