see the attachment
On April 1, 2009, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month: April 1 Nozomi invested $29,000 cash and computer equipment worth $27,000 in the company in exchange for its common stock. 2 The company rented furnished office space by paying $1,700 cash for the first month's (April) rent. 3 The company purchased $1,600 of office supplies for cash. 10 The company paid $2,600 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. 14 The company paid $2,900 cash for two weeks' salaries earned by employees. 24 The company collected $11,000 cash on commissions from airlines on tickets obtained for customers. 28 The company paid another $2,700 cash for two weeks' salaries earned by employees. 29 The company paid $450 cash for minor repairs to the company's computer. 30 The company paid $850 cash for this month's telephone bill. 30 The company paid $800 cash for dividends. The company's chart of accounts follows: 101 106 124 128 167 168 209 307 318 319 Cash Accounts Receivable Office Supplies Prepaid Insurance Computer Equipment Accumulated DepreciationComputer Equip. Salaries Payable Common Stock Retained Earnings Dividends 405 612 622 637 640 650 684 688 901 Commissions Earned Depreciation ExpenseComputer Equip. Salaries Expense Insurance Expense Rent Expense Office Supplies Expense Repairs Expense Telephone Expense Income Summary 4. value: 10 points Requirement 1: Prepare journal entries to record the April transactions. The company records prepaid and unearned items in balance sheet accounts. (Omit the "$" sign in your response.) Date General Journal April 1 April 2 Debit Credit April 3 April 10 April 14 April 24 April 28 April 29 April 30 April 30 5. value: 10 points Requirement 2: Prepare an unadjusted trial balance as of April 30. (List all accounts as shown in the chart of accounts. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Account Title Debit ADVENTURE TRAVEL Unadjusted Trial Balance April 30, 2009 Credit $ $ Totals $ $ 6. value: 10 points Requirement 3: Use the following information to journalize and post adjusting entries for the month. (Round your answers to the nearest dollar amount. Omit the "$" sign in your response.) a. b. c. d. e. Two-thirds of one month's insurance coverage has expired. At the end of the month, $1,000 of office supplies are still available. This month's depreciation on the computer equipment is $500. Employees earned $520 of unpaid and unrecorded salaries as of month-end. The company earned $3,050 of commissions that are not yet billed at month-end. Adjustment (a): Date Apr. 30 General Journal Debit Credit Adjustment (b): Date Apr. 30 General Journal Debit Credit General Journal Debit Credit General Journal Debit Credit General Journal Debit Credit Adjustment (c): Date Apr. 30 Adjustment (d): Date Apr. 30 Adjustment (e): Date Apr. 30 7. value: 15 points Requirement 4: (a) Prepare the income statement for the month of April. (Round your answers to the nearest dollar amount. Omit the "$" sign in your response.) ADVENTURE TRAVEL Income Statement For Month Ended April 30, 2009 Revenues $ Expenses $ Total Expenses $ (b) Prepare the statement of retained earnings for the month of April. (Leave no cells blank - be certain to enter "0" wherever required. Amounts in parentheses do not require a minus sign in front of them. Omit the "$" sign in your response.) ADVENTURE TRAVEL Statement of Retained Earnings For Month Ended April 30, 2009 $ : Sub-Total : () $ (c) Prepare the balance sheet as of April 30, 2009. (Round your answers to the nearest dollar amount. Amounts in parentheses do not require a minus sign in front of them. Omit the "$" sign in your response.) Assets $ ADVENTURE TRAVEL Balance Sheet April 30, 2009 Liabilities $ Equity Computer equipment Less: Accd. Depreciation $ () Total $ liabilities and equity Total assets $ 8. value: 10 points Requirement 5: Prepare journal entries to close the temporary accounts. (Omit the "$" sign in your response.) i. Closing entry for Revenue: Date General Journal April 30 Debit Credit ii. Closing entry for Expense: Date General Journal Debit Credit Debit Credit Debit Credit April 30 iii. Closing entry for Income Summary: Date General Journal April 30 iv. Closing entry for Withdrawals: Date General Journal April 30 9. value: 10 points Requirement 6: Prepare a post-closing trial balance. (Omit the "$" sign in your response.) Debit ADVENTURE TRAVEL Post-Closing Trial Balance April 30, 2009 Credit $ $ Totals $ $
