Problem 4-1A Applying the accounting cycle LO C1, C2, P2, P3 [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 $37,000 cash and computer equipment worth $25,000 in the company. 2 The company rented furnished office space by paying $2,400 cash for the first month's (April) rent. 3 The company purchased $1,100 of office supplies for cash. 10 The company paid $2,800 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. 14 The company paid $900 cash for two weeks' salaries earned by employees. 24 The company collected $8,500 cash on commissions from airlines on tickets obtained for customers. 28 The company paid $900 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 $950 cash for this month's telephone bill. 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 Equip. 209 Salaries Payable 301 J. Nozomi, Capital 302 J. Nozomi, Withdrawals Use the following information: 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 a. Two-thirds (or $156) 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 $300. d. Employees earned $390 of unpaid and unrecorded salaries as of month-end. e. The company earned $1,700 of commissions that are not yet billed at month-end. Problem 4-1A Part 3 3. Using account balances from part 6.2, prepare an unadjusted trial balance as of April 30. 101: Cash ADVENTURE TRAVEL Unadjusted Trial Balance April 30, 2015 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 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 Debit Credit 101: Cash ADVENTURE TRAVEL Adjusted Trial Balance April 30, 2015 Account Title 106: Accounts receivable 124: Office supplies Debit Credit Revenues: ADVENTURE TRAVEL Income Statement For Month Ended April 30, 2015 Expenses: 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 Total expenses 2 Prepare the statement of owner's equity for the month of April 30, 2015. ADVENTURE TRAVEL Statement of Owner's Equity For Month Ended April 30, 2015 J. Nozomi, Capital, April 1, 2015 $ 0 J. Nozomi, Capital, April 30, 2015 3 Prepare the balance sheet at April 30, 2015. ADVENTURE TRAVEL Balance Sheet April 30, 2015 Assets Total assets Liabilities Equity Total liabilities and equity