Problem 4 - 2A Applying the accounting cycle LO C 1 , C2 , P 2, P 3 [ The following information applies to the questions displayed below . ] On April 1 , 2013 , 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 $20, 000 in the company . 2 The company rented furnished office space by paying $2, 000 cash for the first month's ( April) rent . 3 The company purchased $2, 000 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 1 1 .` 14 The company paid $ 1, 000 cash for two weeks' salaries earned by employees. 24 The company collected $70, 500 cash on commissions from airlines on tickets obtained for customers. 28 The company paid $7, 000 cash for two weeks' salaries earned by employees . 29 The company paid $500 cash for minor repairs to the company's computer . 30 The company paid $1 , 300 cash for this month's telephone bill . 30 Nozomi withdrew $1 , 700 cash from the company for personal use The company's chart of accounts follows :" 101 Cash 405 Commissions Earned 106* Accounts Receivable* 612 Depreciation Expense - Computer Equip 124 Office Supplies 622 Salaries Expense 128 Prepaid Insurance 637 Insurance Expense 167 Computer Equipment 640 Rent Expense 168 Accumulated Depreciation - Computer Equip . 650 Office Supplies Expense 209 Salaries Payable 684 Repairs Expense 301 J. Nozomi , Capital 688 Telephone Expense 302 J. Nozomi , Withdrawals 901 Income Summary Use the following information ? 2 . 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 $500 . d . Employees earned $460 of unpaid and unrecorded salaries as of month-end! e . The company earned $1 , 650 of commissions that are not yet billed at month-end .Required :` 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 . DATE GENERAL JOURNAL DEBIT CREDIT April 1 April 2 April 3 April 10 April 14 April 24 April 28 April 29 April 30 April 30Required :` 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 . DATE GENERAL JOURNAL DEBIT CREDIT April 1 April 2 April 3 April 10 April 14 April 24 April 28 April 29 April 30 April 30INCOME STATEMENT Month Ended April 30 , 2013 Revenues Expenses Total expenses NET INCOME Statement of Owner's Equity For Month Ended April 30 , 2013 POT Balance Sheet , April 30 , 2013 Assets Total Assets Liabilities Total Liabilities Equity Total Liabilities and EquityINCOME STATEMENT Month Ended April 30 , 2013 Revenues Expenses Total expenses NET INCOME Statement of Owner's Equity For Month Ended April 30 , 2013 POT Balance Sheet , April 30 , 2013 Assets Total Assets Liabilities Total Liabilities Equity Total Liabilities and EquityINCOME STATEMENT Month Ended April 30 , 2013 Revenues Expenses Total expenses NET INCOME Statement of Owner's Equity For Month Ended April 30 , 2013 POT Balance Sheet , April 30 , 2013 Assets Total Assets Liabilities Total Liabilities Equity Total Liabilities and EquityFollow these steps :" 1 . 2 . Review transaction and record them in the General Journal . The General Journal is on page 2 3 . Post each journal entry to the ledger ( T- Account ) sheet . This is a separate document . 4 . Complete the unadjusted trial balance . ( Top of page 3 ) Adjust accounts a . Journal the adjustments in the spreadsheet provided . ( bottom of page 3 ) The four adjustment transaction are listed on the bottom of page 1 . . Post the adjustments to the ledger and balance each account . 5 . Complete the Income Statement , Statement of Owner's Equity , and the Balance Sheet . ( Page 4 ) 6 . Complete the Adjusted Trial Balance . ( Bottom of page 5 ) . 7 . Close accounts for end of period : 2 . Journal Closing Entries . ( Top of Page 5 ) b. Post journal entries to ledger . 8. Prepare a Post- Closing Trial Balance . ( Page 6 )Follow these steps :" 1 . 2 . Review transaction and record them in the General Journal . The General Journal is on page 2 3 . Post each journal entry to the ledger ( T- Account ) sheet . This is a separate document . 4 . Complete the unadjusted trial balance . ( Top of page 3 ) Adjust accounts a . Journal the adjustments in the spreadsheet provided . ( bottom of page 3 ) The four adjustment transaction are listed on the bottom of page 1 . . Post the adjustments to the ledger and balance each account . 5 . Complete the Income Statement , Statement of Owner's Equity , and the Balance Sheet . ( Page 4 ) 6 . Complete the Adjusted Trial Balance . ( Bottom of page 5 ) . 7 . Close accounts for end of period : 2 . Journal Closing Entries . ( Top of Page 5 ) b. Post journal entries to ledger . 8. Prepare a Post- Closing Trial Balance . ( Page 6 )