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On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month. Apr Noomi invested $30.000 cash and computer equipment worth $30.000 in the company. 2 The company rented furnished office space by paying $1,800 cash for the first month's (April) rent. 3 The company purchased $1.000 of office wpplies for each 10 The company paid $2.400 cash for the premium on a 12-month insurance polley Coverage begins on April 14 The company paid $1.000 cash for two weeks' salaries camned by employees 24 The company collected $8,000 cash for commissions earned. 28 The company paid $1,600 cash for two weeks' salaries eamed by employees 29 The company paid $350 cash for minor repairs to the company's computer 30 The company paid $750 cash for this month's telephone bill. 30 Notom withdrew $1.500 cash from the company for personal use. The company's chart of accounts follows. 101 Cash 405 Commissions Earned 106 Accounts Receivable 612 Depreciation Expense-Computer Equip 194 Office Supplies 622 Salaries Expense 128 Prepaid Insurance 637 Insurance Expertise 167 Computer Equipment Rent Expense 168 Accumulated Depreciation-Computer Equip.650 Office Supplies Expense 209 Salaries Payable 684 Repairs Expense 301 J. Nozomi, Capital 688 Telephone Expetise 302 J. Nozomi, Withdrawals 901 Income Summary 640 Required 1. Use the balance column format to set up each ledger account listed in its chart of accounts. 2. Prepare journal entries to record the transactions for April and post them to the ledger accounts. The company records prepaid and unearned items in balance sheet accounts. 3. Prepare an unadjusted trial balance as of April 30. Check Una trial balance totals $50.000 4. Use the following information to journalize and post adjusting entries for the month: a. Prepaid insurance of $133 has expired this month. 1469 De Insurance Expense $133 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. e. The company earned $1.750 of commissions that are not yet billed at month-end. 5. Prepare the adjusted trial balance as of April 30. Prepare the income statement and the statement of owner's equity for the month of April and the balance sheet at April 30. (5) Net income $2.197: Total assets, 551317 6. Prepare journal entries to close the temporary accounts and post these entries to the ledger. 7. Prepare a post-closing trial balance. DP-C trial balance total 55107
