REVIEW-Full Accounting Cycle Adventure Travel On April 1, 2010, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month. April 1 Nozomi invested $30,000 cash and computer equipment worth $20,000 in the business. 2 Rented furnished office space by paying $1,800 cash for the first month's (April) rent. (Hint: Adventure Travel debited Rent Expense for this payment.) 3 Purchased $1,000 of office supplies for cash. 10 Paid $2,400 cash for the premium on a 12-month insurance policy. Coverage begins on April 11: 14 Paid $1,600 cash for two weeks' salaries earned by employees. 24 Collected $8,000 cash on commissions from airlines on tickets obtained for customers. 26 Paid another $1,600 cash for two weeks' salaries earned by employees. 27 Paid $350 cash for minor repairs to the company's computer. 27 Paid $750 cash for this month's telephone bill. 28 Nozomi withdrew $1,500 cash for personal use. The company's chart of accounts follows: 101 Cash 405 Commissions Earned 106 Accounts Receivable 612 124 Office Supplies-Inventory 622 Depreciation Expense-Computer Equip Salaries Expense 128 Prepaid Insurance 637 Insurance Expense 167 Computer Equipment 640 Rent Expense 168 Accumulated Depreciation-Computer Equip 650 Office Supplies Expense 209 Salaries Payable 684 Repairs Expense 301 J. Nozomi, Capital 688 Telephone Expense 302 J. Nozomi, Withdrawals 901 Income Summary Required 1. Use the balance column format to set up each ledger account listed in the chart of accounts. 2. Prepare journal entries to record the transactions for April and pest them to the ledger accounts. (T- accounto) 3. Prepare an unadjusted trial balance as of April 30. 4. Use the following information to joumalize and post adjusting entries for the month: a. Two-thirds of one month's insurance coverage has expired. (Round your answer to the nearest dollar). b. At the end of-the month, $600 of office supplies are still available. c. This month's depreciation on the computer equipment is $500. d. Employees earned $420 of unpaid and unrecorded salaries as of month-end. 5. Prepare the adjusted trial balance. 6. Prepare the income statement & balance sheet. 7. Prepare the closing journal entries. 9. Prepare the post-closing trial balance. JE # Date Final I.F. Review Adventure Travel JES Accounts and Description I Debit Credit Final I.F. Review Adventure Travel AJES JE # Date Accounts and Description Debit Credit Final I.F. Review Adventure Travel CJES JE # Date Accounts and Description Debit Credit Final I.F. Review- Adventure Travel T-Accounts Use chart of accounts for T-account proper order-start at top left and go down. Balance Sheet Name Final 1.F. Review Adventure Travel Worksheet 1 Date Unadjusted T/B Adjusting JE's Adjusted T/B No Account Dr Cr Dr Cr Dr Cr Dr Income Statement Cri Dr 101 Cash 106 Accounts receivable 124 Office supplies 128 Prepaid insurance 167 168 209 301 302 Computer equipment A/D computer equipment Salaries payable Nozomi capital J Nozomi withdrawals Revenue Depreciation expense Insurance expense 405 612 622 Salaries expense 637 640 650 684 6881 Rent expense Office supplies expense Repairs expense Telephone expense Totals Net profit Cr No Account 101 Cash 106 Accounts receivable 124 Office supplies 128 Prepaid insurance 167 168 209 301 302 405 Computer equipment A/D computer equipment Salaries payable Nozomi capital J Nozomi withdrawals Revenue 612 Depreciation expense 622 Salaries expense 637 Insurance expense 640 Rent expense 650 Office supplies expense 684) Repairs expense 688 Telephone expense 901 Income summary-revenue Income summary-expenses Income summary Totals Final I.F. Review Adventure Travel Worksheet 2 Adjusted T/B Dr Closing JE's Cr Dr Cr Dr Post Closing T/B Cr