Problem 4-1A (Static) 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 $20,000 in the company April 3 The company rented furnished office space by paying $1,800 cash for the first month's (April) rent April 4 The company purchased $1,000 of office supplies for cash April 10 The company paid $2,400 cash for a 12-month insurance policy. Coverage begins on April 11 April 14 The company paid $1,600 cash for two weeks' salaries earned by employees. April 24 The company collected $8,000 cash for commissions revenue. April 28 The company paid $1,600 cash for two weeks' salaries earned by employees April 29 The company paid $350 cash for minor repairs to computer equipment April 30 The company paid $750 cash for this month's telephone bill. April 30 Nozomi withdrew $1.500 cash from the company for personal use. The company's chart of accounts follows 101 Cash 403 Commissions Revenue 106 Accounts Receivable 612 Depreciation Expense-Computer Equipment 124 Office Supplies 622 Salaries Expense 128 Prepaid Insurance 637 Insurance Expense 167 Computer Equipment 640 Rent Expense 168 Accumulated Depreciation-Computer Equipment 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 to prepare adjusting entries: a. Prepaid insurance of $133 expired this month. b. At the end of the month $600 of office supplies are still available. c. This month's depreciation on computer equipment is $500. d. Employees earned $420 of unpaid and unrecorded salaries as of month-end. e. The company earned $1750 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 Req6B Gtab. 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 68 tab, using April 30 Adjusted as the date. 5a. Using adjusted account balances from Rea GB 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 Reg 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. Reg 1 and 2 Reg 3 Req 4 Reg SA Reg 58 Reg 5 Reg 50 Reg 6 Heg 60 GL Reg? Prepare journal entries to record the transactions for April and post them to ledger accounts i Reg 6B GL tab. The company records prepaid and unearned items in balance sheet accounts View transaction list Journal entry worksheet 3 2 5 6 9 10 Nozomi invested $30,000 cash and computer equipment worth $20,000 in the company Not: Enter debits before credits General Journal Date April 02 Debit Credit Record entry Clear entry View general journal 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 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 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 Dondendo Rey Idnu 2 Rey DA Using adjusted account balances from Req 6B GL tab, prepare an adjusted trial balance as of April 30. Debit Credit ADVENTURE TRAVEL Adjusted Trial Balance April 30 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 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 Rey Idnu 2 Rey DA Using adjusted account balances from Req 6B GL tab, prepare an adjusted trial balance as of April 30. Debit Credit ADVENTURE TRAVEL Adjusted Trial Balance April 30 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 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 Prepare the income statement for the month of April 30. ADVENTURE TRAVEL Income Statement For Month Ended April 30 Revenues Expenses Total expenses Prepare the statement of owner's equity for the month of April 30. ADVENTURE TRAVEL Statement of Owner's Equity For Month Ended April 30 J. Nozomi, Capital, April 1 $ 0 J Nozomi Capital, April 30 PaR PA Prepare the balance sheet at April 30. ADVENTURE TRAVEL Balance Sheet April 30 Total assets Total liabilities and equity General Ledger accounts 101: Cash Debit 106: Accounts Receivable Debit Credit Date Credit Balance Date Balance 124: Office Supplies Dobit Credit 128: Prepaid Insurance Debit Credit Date Balance Date Balance 167: Computer Equipment Debit Credit 168: Accumulated Depreciation-Computer Equipment Debit Credit Balance Date Balance Date 209: Salaries Payable Debit Credit 301:J. Nozomi, Capital Debit Credit Date Balance Date Balance 302: J. Nozomi, Withdrawals Debit Credit 403: Commissions Revenue Debit Credit Date Balance Balance Date 622: Salaries Expense Debit Credit 612 Depreciation Expense-Computer Equipment Balance Date Credit Debit Balance Date Prav 1.001 Next 637: Insurance Expense Debit Credit Date 640: Rent Expense Debit Credit Balance Date Balance 650: Office Supplies Expense Debit Credit 684: Repairs Expense Debit Credit Date Balance Date Balance 688: Telephone Expense Debit Credit 901: Income Summary Debit Credit Date Balance Date Balance