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Problem 3-6A Applying the accounting cycle LO P1, P2, P3, P4, P5 On April 1, 2017, 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 company in exchange for common stock. 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 supplies for cash. 10 The company paid $2,400 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. 14 The company paid $1,600 cash for two weeks' salaries earned by employees. 24 The company collected $8,000 cash on commissions from airlines on tickets obtained for customers. 28 The company paid $1,600 cash for two weeks' salaries earned 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 The company paid $1,500 cash in dividends. The company's chart of accounts follows: 101 Cash 106 Accounts Receivable 124 Office Supplies 128 Prepaid Insurance 167 Computer Equipment 168 Accumulated Depreciation-Computer Equip. 209 Salaries Payable 307 Common Stock 318 Retained Earnings 319 Dividends 405 Commissions Earned 612 Depreciation Expense-Computer Equip. 622 Salaries Expense 637 Insurance Expense 640 Rent Expense 650 Office Supplies Expense 684 Repairs Expense 688 Telephone Expense 901 Income Summary Use the following information: a. Two-thirds (or $133) of one month's insurance coverage has expired. 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. 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 and post the adjusting entries for the month and prepare the adjusted trial balance. 5a. Prepare the income statement for the month of April 30, 2017. 5b. Prepare the statement of retained earnings for the month of April 30, 2017. 5c. Prepare the balance sheet at April 30, 2017. 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 is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Req 4 Adj Entries Req 4 Adj Trial Bal Req 5A Req 5B Req 5C Req 6A Req 6B GL Req 7 Post the journal entries to the ledger. If there is more than one transaction on a specific date, make sure to select the specific (abbreviated) date choice for that transaction in the date field. Req 1 and 2 Reg 3 Req 4 Adj Entries Req 4 Adj Trial Bal Req 5A Req 5B Req 5C Req 6A Req 6B GL Req 7 Post the journal entries to the ledger. If there is more than one transaction on a specific date, make sure to select the specific (abbreviated) date choice for that transaction in the date field. General Ledger accounts Cash Credit Date Debit 30,000 Accounts Receivable Debit Credit 1,750 Balance 1,750 April 30 Adj. Date April 1 April 2 April 3 April 10 April 14 April 24 April 28 April 29 April 30 Tel. April 30 Div 1,800 1,000 2,400 1,600 OOOOOOOOOO Balance 30,000 28,200 27,200 24,800 23,200 31,200 29,600 29,250 28,500 27,000 8.000 1,600 350 750 1,500 Date April 3 Office Supplies Debit Credit 1,000 Balance 1,000 Date April 10 Prepaid Insurance Debit Credit 2,400 Balance 2,400 Date April 1 Computer Equipment Debit Credit 20,000 Balance 20,000 Accumulated Depreciation-Computer equipment Date Debit Credit Balance April 30 Adj. 500 500 Salaries Payable Debit Credit 420 Date April 30 Adj. Date Balance 420 Common Stock Debit Credit 50,000 Balance 50,000 April 1 Retained Earnings Debit Credit Balance Date Date April 30 Close Dividends Debit Credit 1,500 Balance 1,500 1,500 (1,500) April 30 Date Commissions Earned Debit Credit 8,000 Balance (8,000) Depreciation Expense-Computer Equipment Date Debit Credit Balance April 30 Close 500 (500) April 30 Adj. April 30 9,750 Close (17,750) Salaries Expense Debit Credit Insurance Expense Debit Credit Date Balance April 14 1,600 1,600 Date April 30 Close April 30 Adi 2,400 Balance (2,400) (2,267) April 28 1,600 3,200 133 Rent Expense Office Supplies Expense Date April 2 Rent Expense Debit Credit 1,800 Balance 1,800 Date April 30 Adj. Office Supplies Expense Debit Credit 400 Balance 400 Repairs Expense Debit Credit 350 Date April 29 Balance Balance 350 Telephone Expense Debit Credit 750 Date April 30 750 Income Summary Debit Credit Date Balance