Return to question On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month. April 1 Nozomi invested $36,000 cash and computer equipment worth $35,000 in the company. 2 The company rented furnished office space by paying $3,000 cash for the first month's (April) rent. 3 The company purchased $1,200 of office supplies for cash. 10 The company paid $2,400 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 $9,000 cash for commissions earned. 28 The company paid $1,100 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 $1,150 cash for this month's telephone bill. 30 Nozomi withdrew $2,000 cash from the company for personal use. The company's chart of accounts follows: 405 Commissions Earned Depreciation Expense-Computer 612 Equip. 101 Cash 106 Accounts Receivable 301 J. Nozomi, Capital 302 J. Nozomi, withdrawals 688 Telephone Expense 901 Income Summary 100 points Use the following information: a. Prepaid insurance of $133 has expired this month. b. At the end of the month, $600 of office supplies are still available. C. This month's depreciation on the computer equipment is $300 d. Employees earned $320 of unpaid and unrecorded salaries as of month-end. e. The company earned $2,350 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 Requiremen 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. 5b. Prepare the statement of owner's equity for the month of April 30. 5c. Prepare the balance sheet at April 30. 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 Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Req 4 Adj Entries Req 4 Adj Trial Bal Reg SA Reg 5B Reg 5C Using account balances from Requirement 6b, prepare an unadjusted trial balance as of Apr ADVENTURE TRAVEL Unadjusted Trial Balance April 30, 2017 Account Title Debit Credit Using account balances from Requirement 6b, prepare an unadjusted trial balance as on Credit 48.000 $ ADVENTURE TRAVEL Unadjusted 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 $ 0 $ 48,000
