Question

On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month. 1 Nozomi invested $45,000 cash and computer equipment worth $20,000 in the company in exchange for common stock. 2 The company rented furnished office space by paying $2,500 cash for the first month's (April) rent. 3 The company purchased $1,300 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. April 14 The company paid $1,700 cash for two weeks' salaries earned by employees. 24 The company collected $15,500 cash for commissions earned. 28 The company paid $1,700 cash for two weeks' salaries earned by employees. 29 The company paid $300 cash for minor repairs to the company's computer. 30 The company paid $1,050 cash for this month's telephone bill. 30 The company paid $1,700 cash in dividends. The company's chart of accounts follows: 405 Commissions Earned 101 Cash 106 Accounts Receivable 612 Depreciation Expense-Computer Equip. 622 Salaries Expense 124 Office Supplies 128 Prepaid Insurance 637 Insurance Expense 167 Computer Equipment 168 Accumulated Depreciation-Computer Equip. 209 Salaries Payable 640 Rent Expense 650 Office Supplies Expense 684 Repairs Expense 688 Telephone Expense 901 Income Summary 307 Common Stock 318 Retained Earnings 319 Dividends Use the following information: a. Prepaid insurance of $133 has expired this month. b. At the end of the month, $500 of office supplies are still available. c. This month's depreciation on the computer equipment is $600. d. Employees earned $340 of unpaid and unrecorded salaries as of month-end. e. The company earned $2,200 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 Requirement 6b. 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 prepare the adjusted trial balance. 5a. Prepare the income statement for the month of April 30. 5b. Prepare the statement of retained earnings 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.

Answer 1

Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks!

Due to character limit I am attaching the image for some part.

Nozomi	Journal Entries
Date	Account	Debit	Credit
April 1st	Cash	45,000.00
	Computer Equipment	20,000.00
	Common Stock		65,000.00
	(being share capital raised by providing cash and Equipment)
April 2nd	Rent Expense	2,500.00
	Cash		2,500.00
	(being rent paid for the month)
April 3rd	Office Supplies	1,300.00
	Cash		1,300.00
	(being office supplies purchased)
April 10th	Prepaid Insurance	2,400.00
	Cash		2,400.00
	(being insurance expense paid for the year)
April 14th	Salaries Expense	1,700.00
	Cash		1,700.00
	(being salaries paid for two weeks.)
April 24th	Cash	15,500.00
	Commission Earned		15,500.00
	(being commission income earned)
April 28th	Salaries Expense	1,700.00
	Cash		1,700.00
	(being salaries paid for two weeks.)
April 29th	Repairs Expense	300.00
	Cash		300.00
	(being repairs paid in cash.)
April 30th	Telephone Expense	1,050.00
	Cash		1,050.00
	(being Telephone Bill paid in cash.)
April 30th	Dividends	1,700.00
	Cash		1,700.00
	(being dividends paid.)		Cash Account Common Stock Rent Expense Office Supplies Prepaid Insurance Salaries Expense Commission Earned Salaries Expense Debit Credit Balance Date April 1st April 2nd April 3rd April 10th April 14th April 24th April 28th April 29th April 30th April 30th 45,000.00 45,000.00 2,500.00 42,500.00 1,300.00 41,200.00 2,400.00 38,800.00 1,700.00 37,100.00 15,500.00 52,600.00 1,700.00 50,900.00 Repairs Expense Telephone Expense Dividends 300.00 50,600.00 1,050.00 49,550.00 1,700.00 47,850.00 Accounts Receivable Account Commissions Earned Debit Credit Balance Date April 30th 2,200.00 2,200.00 Office Supplies Account Cash Office Supplies Expense Debit Credit Balance Date April 3rd April 30th 1,300.00 1,300.00 800.00 500.00 Prepaid Insurance Account Credit Debit Balance Date April 10th April 30th Cash 2,400.00 2,400.00 Insurance Expense 133.00 2,267.00 Computer Equipment Account Common Stock Debit Credit Balance Date April 1st 20,000.00 20,000.00 Н Accumulated Depreciation-Computer Equip. Account Debit Credit Balance Date Depreciation Expense-Computer Equip. April 30th 600.00 600.00 Salaries Payable Account Salaries Expense Debit Credit Balance Date April 30th 340.00 340.00 Common Stock Account Debit Credit Balance Date April 1st April 1st Cash 45,000.00 45,000.00 Computer Equipment 20,000.00 65,000.00 Dividends Account Credit Debit Balance Date April 30th Cash 1,700.00 1,700.00 Salaries Expense Debit Credit Balance Date Account April 14th April 28th April 30th Cash 1,700.00 1,700.00 Cash 1,700.00 3,400.00 Salaries Payable 340.00 3,740.00 Insurance Expense Account Debit Credit Balance Date April 30th Prepaid Insurance 133.00 133.00 Rent Expense Credit Account Balance Date Debit April 2nd Cash 2,500.00 2,500.00 Office Supplies Expense Credit Debit Balance Date Account Office Supplies April 30th 800.00 800.00 Repairs Expense Credit Debit Balance Date Account Cash April 29th 300.00 300.00 Telephone Expense Account Debit Credit Balance Date Cash 1,050.00 April 30th 1,050.00 Commission Earned Account Debit Credit Balance Date April 24th Cash 15,500.00 15,500.00 Accounts Receivable April 30th 2,200.00 17,700.00 Depreciation Expense-Computer Equip. Account Accumulated Depreciation-Computer Equip. Credit Debit Balance Date April 30th 600.00 600.00 Adjustment Entries April 30th Insurance Expense 133.00 Prepaid Insurance |(being insurance expense recorded for April) 133.00 April 30th Office Supplies Expense 800.00 Office Supplies (being office supplies expense booked for April) 800.00 April 30th Depreciation Expense-Computer Equip. Accumulated Depreciation-Computer Equip. |(being depreciation expense booked for April) 600.00 600.00 April 30th Salaries Expense Salaries Payable (being salaries payable for April) 340.00 340.00 April 30th Accounts Receivable Commissions Earned 2,200.00 2,200.00 (being Unearned Commissions recorded for April) Unadjusted Trial Balance Debit Credit Cash 47,850.00 Accounts Receivable Office Supplies Prepaid Insurance Computer Equipment Accumulated Depreciation-Computer Equip. Salaries Payable Common Stock Retained Earnings 1,300.00 2,400.00 20,000.00 65,000.00 Dividends 1,700.00 Commission Earned Depreciation Expense-Computer Equip. Salaries Expense Insurance Expense Rent Expense Office Supplies Expense Repairs Expense Telephone Expense 15,500.00 3,400.00 2,500.00 300.00 1,050.00 Total 80,500.00 80,500.00 Income Summary Debit Credit Balance Date Account April 30th April 30th April 30th April 30th April 30th April 30th April 30th April 30th Commission Earned Depreciation Expense-Computer Equip. Salaries Expense Insurance Expense Rent Expense Office Supplies Expense Repairs Expense Telephone Expense 17,700.00 17,700.00 Adjusted Trial Balance Debit Credit 600.00 17,100.00 Cash 47,850.00 3,740.00 13,360.00 2,200.00 133.00 13,227.00 Accounts Receivable Office Supplies Prepaid Insurance Computer Equipment Accumulated Depreciation-Computer Equip. Salaries Payable 500.00 2,500.00 10,727.00 2,267.00 800.00 9,927.00 20,000.00 300.00 9,627.00 600.00 8,577.00 1,050.00 340.00 Common Stock 65,000.00 Retained Earnings Dividends 1,700.00 17,700.00 Commission Earned Depreciation Expense-Computer Equip. Salaries Expense Insurance Expense Rent Expense Office Supplies Expense 600.00 3,740.00 133.00 2,500.00 800.00 Repairs Expense Telephone Expense 300.00 1,050.00 Total 83,640.00 83,640.00 Income Summary Debit Credit Balance Date Account April 30th April 30th April 30th April 30th April 30th April 30th April 30th April 30th Commission Earned Depreciation Expense-Computer Equip. Salaries Expense Insurance Expense Rent Expense Office Supplies Expense Repairs Expense Telephone Expense 17,700.00 17,700.00 Adjusted Trial Balance Debit Credit 600.00 17,100.00 Cash 47,850.00 3,740.00 13,360.00 2,200.00 133.00 13,227.00 Accounts Receivable Office Supplies Prepaid Insurance Computer Equipment Accumulated Depreciation-Computer Equip. Salaries Payable 500.00 2,500.00 10,727.00 2,267.00 800.00 9,927.00 20,000.00 300.00 9,627.00 600.00 8,577.00 1,050.00 340.00 Common Stock 65,000.00 Retained Earnings Dividends 1,700.00 17,700.00 Commission Earned Depreciation Expense-Computer Equip. Salaries Expense Insurance Expense Rent Expense Office Supplies Expense 600.00 3,740.00 133.00 2,500.00 800.00 Repairs Expense Telephone Expense 300.00 1,050.00 Total 83,640.00 83,640.00 Retained Earnings Income Statement Particulars Balance Account Income Summary Dividends Paid Debit Date Credit Amount April 30th April 30th 8,577.00 8,577.00 Revenues 17,700.00 1,700.00 6,877.00 Commission Earned Expenses Retained Earnings Retained Earnings April 1, 2017 Depreciation Expense-Computer Equip. Salaries Expense Insurance Expense Rent Expense Office Supplies Expense Repairs Expense Telephone Expense Total Expenses Net Income 600.00 3,740.00 Net Income 133.00 8,577.00 Dividends Paid 2,500.00 1,700.00 Retained Earnings April 30, 2017 6,877.00 800.00 300.00 Balance Sheet Amount 1,050.00 Cash 47,850.00 9,123.00 Accounts Receivable Office Supplies Prepaid Insurance Computer Equipment Accumulated Depreciation-Computer Equid 8,577.00 2,200.00 500.00 Closing Entries Account 2,267.00 Date April 30th Commission Earned Debit 20,000.00 (600.00) Credit 17,700.00 Income Summary Total Assets 17,700.00 72,217.00 Liabilities April 30th Income Summary Salaries Payable Total Liabilities 9,123.00 340.00 Depreciation Expense-Computer Equip. Salaries Expense Insurance Expense Rent Expense Office Supplies Expense Repairs Expense Telephone Expense 600.00 340.00 3,740.00 Common Stock Retained Earnings Total Equity Total Liabilities & Equity 65,000.00 133.00 2,500.00 6,877.00 800.00 71,877.00 300.00 72,217.00 1,050.00 April 30thIncome Summary Retained Earnings 8,577.00 8,577.00 April 30th Retained Earnings 1,700.00 Dividend 1,700.00