Problem 4-1A Applying the accounting cycle LO C2, P2, P3 On April 1, Jiro Nozomi created a new travel agency. Adventure Travel. The following transactions occurred during the company's first month pril 1 Nozomi invented $36.000 cash and computer equipment worth $35,000 in the company 2 The company rented furnished office space by paying $2,100 cash for the first month'. (April) rent: 3 The company purchased 51, 400 of office supplies for cash 20 The company paid $2,300 cash for the premis on a 12-month insurance policy. Coverage begins on April 11. 14 The company paid $1,400 cash for two weeks' salaries earned by employees. 24 The company collected $9,000 cash for commissions earned, 28 The company paid $1,400 cash for two weeks! salaries earned by employees. 29 The company paid $400 cash for minor repairs to the company's computer, 30 The company paid $1,150 cash for this month's telephone bai. 30 Nozomi withdrew $1,700 cash from the company for personal use. The company's chart of accounts follows: 101 Cash 106 Accounts Receivable 124 office Supplies 228 Prepaid Insurance 167 Computer Equipment 168 calated Depreciation-computer Equip 209 salaries Payable 61 a. oon Capital 302 . NOMI, Withdrawals 405 Come sions Larned 612 Depreciation Expense-computer Equip. 622 salaries Expense 637 Instance Expena 640 Rent Expense 650 Office Supplies Een 84 Repairs Expense EBS Telephone Expenne 901 Income Smary Use the following information 6. Prepaid insurance of $128 has expired this month b. At the end of the month, $800 of office supplies are still available c. This month's depreciation on the computer equipment is $400. d. Employees eamed $310 of unpaid and unrecorded salaries as of month end .. The company earned $2.050 of commissions that are not yet billed at month-end. Req 1 and 2 Req3 Req 4 Adj Entries Req 4 Adj Trial Bal Req 5A Req 5B Req SC Req 6A Req 60 GL Req 7 Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30. ADVENTURE TRAVEL Unadjusted Trial Balance April 30 Account Title Debit Credit $ 33,150 0 1.400 2.300 35,000 0 0 71,000 101: 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. Nozom, Withdrawals 405 Commissions eamed 612 Depreciation expense Computer equipment 622 Salaries expense 637 Insurance expense 640 Rent expense 650. Office supplies expense 654 Repairs expense 688 Telephone expense Total 1,700 9,000 0 % 2.800 0X 2.100 OX 400 1.150 80,000 S 80,000
