Problem 4-1A Applying the accounting cycle LO C1, C2, P2, P3 On April 1, 2017, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month. April i Nozomi invested $43,000 cash and computer equipment worth $40,000 in the company. 2 The company rented furnished office space by paying $1,800 cash for the first month's (April) rent. 3 The company purchased $1,600 of office supplies for cash. 10 The company paid $2,700 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. 14 The company paid $1,100 cash for two weeks' salaries earned by employees. 24 The company collected $20,500 cash on commissions from airlines on tickets obtained for customers. 28 The company paid $1,100 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 $1,200 cash for this month's telephone bill. 30 Nozomi withdrew $1,800 cash from the company for personal use. The company's chart of accounts follows: ook rences 101 Cash 106 Accounts Receivable 124 Office Supplies 128 Prepaid Insurance 167 Computer Equipment Accumulated Depreciation-Computer 168 Equip. 209 Salaries Payable 301 J. Nozomi, Capital 302 3. Nozomi, Withdrawals 405 Commissions Earned Depreciation Expense-Computer 612 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: a. Two-thirds for $150of one month's insurance coverace has expired Use the following information: a. Two-thirds (or $150) 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 $540 of unpaid and unrecorded salaries as of month-end. e. The company earned $1,550 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 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 prepare the adjusted trial balance. 5a. Prepare the income statement for the month of April 30, 2017 5b. Prepare the statement of owner's equity 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. ces Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Req 4 Adj Req 4 Adj Entries Trial Bal Req 5A Req 5B Req 5C Req 6A Reg 6B GL Req 7 Prepare the income statement for the month of April 30, 2017. ADVENTURE TRAVEL Income Statement For Month Ended April 30, 2017 Revenues: Commissions earned FANGAS NO General Journal Credit 1 April 01 Cash Computer equipment J. Nozomi, Capital Dobit 43,000 40,000 83,000 2 April 02 Rent expense 1,800 Cash 1,800 3 April 03 Office supplies Cash 1,600 1,600 4 April 10 Prepaid insurance Cash 2,700 2,700 en April 14 1,100 Salaries expense Cash 1,100 6 April 24 20,500 Cash Commissions earned 20,500 7 April 28 1,100 Salaries expense Cash 1,100 B April 29 350 Repairs expense Cash 350 9 April 30 1,200 Telephone expense Cash 1,200 10 April 30 1,800 J. Nozomi, Withdrawals Cash 1 800 ADVENTURE TRAVEL Unadjusted Trial Balance April 30, 2017 Account Title Debit Credit 101: Cash $ 71,800 106: Accounts receivable 0 124: Office supplies 1,600 128: Prepaid insurance 2,700 167: Computer equipment 40,000 168: Accumulated depreciationComputer 0 equipment 209: Salaries payable 0 301: J. Nozomi, Capital 83,000 302: J. Nozomi, Withdrawals 1,800 405: Commissions earned 20,500 612: Depreciation expense-Computer equipment 622: Salaries expense 2,200 637: Insurance expense 0 640: Rent expense 1,800 650: Office supplies expense 0 684: Repairs expense 350 688: Telephone expense 1,200 Total $ 123,450 $ 103,500 Req 1 and 2 Req3 Req 4 Adj Req 4 Adj Entries Trial Bal Req 5A Req 5B Req 5C Req 6A Req 6B GL Req 7 Journalize the adjusting entries for the month, and then post to the ledger on Req 68 tab, using April 30 Adj. date. View transaction list View journal entry worksheet No Transaction 1 a. Credit General Journal Insurance expense Prepaid insurance Dobit 150 150 2 b. Office supplies expense Office supplies 900 900 3 C. Depreciation expense-Computer equip. Accumulated depreciation-Computer equip. 500 500 4 d. Salaries expense Salaries payable 540 540 5 e Accounts receivable Commissions earned 1,550 1,550 30. (Do not round Intermediate calculations.) Deblt Credit Book 1,550 900 150 erences 5001 ADVENTURE TRAVEL Adjusted Trial Balance April 30, 2017 Account Title 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 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 5401 500 540 150 900 3,640 $ 2,090 Req 1 and 2 Reg 3 Req 4 Adj Req 4 Adj Entries Trial Bal Req5A Req 5B Req 5C Req 6A Req 6B GL Req 7 Prepare the income statement for the month of April 30, 2017. k nces ADVENTURE TRAVEL Income Statement For Month Ended April 30, 2017 Revenues: Commissions earned Expenses: Depreciation expense-Computer equip. Salaries expense Insurance expense Rent expense Office supplies Repairs expense Telephone expense Total expenses Net income $ 0 0 should be entered with a minus sign.) ADVENTURE TRAVEL Statement of Owner's Equity For Month Ended April 30, 2017 J. Nozomi, Capital, April 1, 2017 0 0 J.Nozomi, Capital, April 30, 2017 $ 0 ADVENTURE TRAVEL Balance Sheet April 30, 2017 ces 0 Total assets $ Total liabilities and equity 0 ning your answers in the tabs below. Reg 1 and 2 Req3 Req 4 Adj Req 4 Adj Entries Trial Bal Req 5A Req 5B Req 5C Req 6A Req 6B GL Req 7 Prepare journal entries to close the temporary accounts and then post to Req 6B General Ledger, using April 30 Close as the date. View transaction list ok Journal entry worksheet ces General Ledger accounts Cash Debit Accounts Rocolvable Dobit Credit Date Credit Balance Date Balance Office Supplies Debit Credit Prepaid Insurance Debit Credit Date Balance Date Balance Computer Equipment Debit Credit Accumulated Depreciation-Computer equipment Date Debit Credit Balance Date Balance Salaries Payable Debit Credit J. Nozomi, Capital Debit Credit Date Balance Date Balance J. Nozoml, Withdrawals Debit Credit Commissions anried Dobit Credit Balance Dato Blanco Depreciation Expense---Computer Equipment Dato Debit Credit Balance Salaries Expenso Dobit Credit Date Balance Insurance Expense Debit Credit Rent Expense Debit Credit Date Balance Date Balance Office Supplies Expense Debit Credit Date Repairs Expense Debit Credit Balance Date Balance Telephone Expense Debit Credit Income Summary Debit Credit Date Balance Date Balance ADVENTURE TRAVEL Post-Closing Trial Balance April 30, 2017 Account Title Debit Credit es Totals $ 0 $ 0