Problem 4-1A (Algo) Applying the accounting cycle LO P2 On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month. April 2 Nozomi invested $30,000 cash and computer equipment worth $30,000 in the company. April 3 The company rented furnished office space by paying $2,300 cash for the first month's (April) rent. April 4 The company purchased $1,300 of office supplies for cash. April 10 The company paid $2,300 cash for a 12-month insurance policy. Coverage begins on April 11. April 14 The company paid $1,400 cash for two weeks' salaries earned by employees. April 24 The company collected $11,000 cash for commissions revenue. April 28 The company paid $1,400 cash for two weeks' salaries earned by employees. April 29 The company paid $500 cash for minor repairs to computer equipment. April 30 The company paid $850 cash for this month's telephone bill. April 30 Nozomi withdrew $2,400 cash from the company for personal use. 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 Equipment 209 Salaries Payable 301 J. Nozomi, Capital 302 J. Nozomi, Withdrawals Use the following information to prepare adjusting entries: a. Prepaid insurance of $128 expired this month. 403 Commissions Revenue 612 Depreciation Expense-Computer Equipment 622 Salaries Expense Insurance Expense 637 640 Rent Expense 650 Office Supplies Expense 684 Repairs Expense 688 Telephone Expense 901 Income Summary b. At the end of the month, $700 of office supplies are still available. c. This month's depreciation on computer equipment is $400. d. Employees earned $590 of unpaid and unrecorded salaries as of month-end. e. The company earned $2,400 of commissions revenue that is not yet recorded at month-end. Required: 1. & 2. Prepare journal entries to record the transactions for April and post them to ledger accounts in Req 6B GL tab. 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 then post to the ledger on Req 6B tab, using April 30 Adjusted as the date. 5a. Using adjusted account balances from Req 6B GL tab, prepare an adjusted trial balance as of April 30. 5b. Prepare the income statement for the month of April 30. 5c. Prepare the statement of owner's equity for the month of April 30. 5d. Prepare the balance sheet at April 30. 6a. Prepare journal entries to close the temporary accounts and then post to Req 6B GL tab, using April 30 Close as the date. 6b. Post the journal entries to the ledger. 7. Prepare a post-closing trial balance. Journal entry worksheet 1 2 3 456 7 8 9 10 Nozomi invested $30,000 cash and computer equipment worth $30,000 in the company. Note: Enter debits before credits. Date April 02 General Journal Debit Credit Record entry Clear entry View general journal < Req 1 and 2 Req 3 > 101: Cash ADVENTURE TRAVEL Unadjusted Trial Balance April 30 Account Title 106: Accounts receivable 124: Office supplies 128: Prepaid insurance 167: Computer equipment 168: Accumulated depreciation-Computer equipment 209: Salaries payable 301: J. Nozomi, Capital 302: J. Nozomi, Withdrawals 403: Commissions revenue 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 Debit Credit Journal entry worksheet 1 2 3 45 Record the required adjusting entry, if any. Prepaid insurance of $128 expired this month. Note: Enter debits before credits. Transaction a. General Journal Debit Credit Record entry Clear entry View general journal 101: Cash ADVENTURE TRAVEL Adjusted Trial Balance April 30 Account Title 106: Accounts receivable 124: Office supplies 128: Prepaid insurance 167: Computer equipment 168: Accumulated depreciation-Computer equipment 209: Salaries payable 301: J. Nozomi, Capital 302: J. Nozomi, Withdrawals 403: Commissions revenue 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 Debit Credit Revenues: ADVENTURE TRAVEL Income Statement For Month Ended April 30 Expenses: Total expenses ADVENTURE TRAVEL Statement of Owner's Equity For Month Ended April 30 J. Nozomi, Capital, April 1 J. Nozomi, Capital, April 30 $ 0 Total assets Total liabilities and equity ADVENTURE TRAVEL Balance Sheet April 30 Journal entry worksheet 1 2 3 4 Record the entry to close revenue account(s). Note: Enter debits before credits. Date April 30 General Journal Debit Credit Record entry Clear entry View general journal General Ledger accounts 101: Cash Date Debit Credit Balance Date 106: Accounts Receivable Debit Credit Balance Date Date Date Date Credit Balance Date 128: Prepaid Insurance Debit Credit Balance 124: Office Supplies Debit 167: Computer Equipment 168: Accumulated Depreciation-Computer Debit Credit Balance Date Debit Credit equipment Balance 209: Salaries Payable Debit Credit Balance Date 301: J. Nozomi, Capital Debit Credit Balance 302: J. Nozomi, Withdrawals Debit Credit Balance Date 403: Commissions Revenue Debit Credit Balance 612: Depreciation Expense-Computer Equipment Date Debit Credit Balance Date 622: Salaries Expense Debit Credit Balance Date Date Date 637: Insurance Expense Debit Credit Balance Date 640: Rent Expense Debit Credit Balance 650: Office Supplies Expense Debit Credit Balance Date 684: Repairs Expense Debit Credit Balance 688: Telephone Expense 901: Income Summary Debit Credit Balance Date Debit Credit Balance Totals ADVENTURE TRAVEL Post-Closing Trial Balance April 30 Account Title Debit Credit