On April $1,$ Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company$’$s first month.

April $2$ Nozomi invested $$41,000$ cash and computer equipment worth $$25,000$ in the company.

April $3$ The company rented furnished office space by paying $$2,600$ cash for the first month$’$s $($April$)$ rent.

April $4$ The company purchased $$1,900$ of office supplies for cash.

April $10$ The company paid $$2,300$ cash for a $12-$month insurance policy. Coverage begins on April $11.$

April $14$ The company paid $$1,100$ cash for two weeks' salaries earned by employees.

April $24$ The company collected $$11,000$ cash for commissions revenue.

April $28$ The company paid $$1,100$ cash for two weeks' salaries earned by employees.

April $29$ The company paid $$400$ cash for minor repairs to computer equipment.

April $30$ The company paid $$1,350$ cash for this month's telephone bill.

April $30$ Nozomi withdrew $$1,600$ cash from the company for personal use.

The company's chart of accounts follows:

$101$ Cash $403$ Commissions Revenue

$106$ Accounts Receivable $612$ Depreciation Expense$—$Computer Equipment

$124$ Office Supplies $622$ Salaries Expense

$128$ Prepaid Insurance $637$ Insurance Expense

$167$ Computer Equipment $640$ Rent Expense

$168$ Accumulated Depreciation$—$Computer Equipment $650$ Office Supplies Expense

$209$ Salaries Payable $684$ Repairs Expense

$301$ J$.$ Nozomi, Capital $688$ Telephone Expense

$302$ J$.$ Nozomi, Withdrawals $901$ Income Summary

Use the following information to prepare adjusting entries:

Prepaid insurance of $$128$ expired this month.

At the end of the month, $$600$ of office supplies are still available.

This month$’$s depreciation on computer equipment is $$400.$

Employees earned $$520$ of unpaid and unrecorded salaries as of month$-$end.

The company earned $$2,150$ of commissions revenue that is not yet recorded at mo$5$a$.$ Using adjusted account balances from Req $6$B GL tab, prepare an adjusted trial balance as of April $30.$

$5$b$.$ Prepare the income statement for the month of April $30.$

$5$c$.$ Prepare the statement of owner's equity for the month of April $30.$

$5$d$.$ Prepare the balance sheet at April $30.$nth$-$end.
 
 

Transcribed Image Text:

ADVENTURE TRAVEL Adjusted Trial Balance April 30 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 403: Commissions revenue 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 Debit Credit $ 0 $ 0 ADVENTURE TRAVEL Income Statement For Month Ended April 30 Revenues: Expenses: Total expenses 0 $ 0 ADVENTURE TRAVEL Statement of Owner's Equity For Month Ended April 30 J. Nozomi, Capital, April 1 $ 0 Total assets J. Nozomi, Capital, April 30 S 0 ADVENTURE TRAVEL Balance Sheet April 30 0 $ 0 Total liabilities and equity S 0 ADVENTURE TRAVEL Adjusted Trial Balance April 30 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 403: Commissions revenue 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 Debit Credit $ 0 $ 0 ADVENTURE TRAVEL Income Statement For Month Ended April 30 Revenues: Expenses: Total expenses 0 $ 0 ADVENTURE TRAVEL Statement of Owner's Equity For Month Ended April 30 J. Nozomi, Capital, April 1 $ 0 Total assets J. Nozomi, Capital, April 30 S 0 ADVENTURE TRAVEL Balance Sheet April 30 0 $ 0 Total liabilities and equity S 0

Answer rating: 100% (QA)

Based on the provided information lets start by preparing the adjusted trial balance Account Debit C... View the full answer