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 $31,000 cash and computer equipment worth $30,000 in the company in exchange for common stock. 2 The company rented furnished office space by paying $2,200 cash for the first month's (April) rent 3 The company purchased $1,300 of office supplies for cash 10 The company paid $2,900 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. 14 The company paid $1,000 cash for two weeks' salaries earned by employees. 24 The company collected $21,000 cash on commissions from airlines on tickets obtained for customers. 28 The company paid $1,000 cash for two weeks salaries earned by employees. 29 The company paid $400 cash for minor repairs to the company's computer. 30 The company paid $1,250 cash for this month's telephone bi11. 30 The company paid $1,600 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 $161) of one month's insurance coverage has expired b. At the end of the month, $700 of office supplies are still available c. This month's depreciation on the computer equipment is $500 d. Employees earned $350 of unpaid and unrecorded salaries as of month-end e. The company earned $2,300 of commissions that are not yet billed at month-end ADVENTURE TRAVEL Balance Sheet April 30, 2017 Assets Cash Accounts receivable Office supplies Prepaid insurance Computer equipment Accumulated depreciation-Computer equip Total assets 2,300 700 30,000 30,000 33,000 Liabilities alaries payable Equity Common stock Retained earnings Total equity Total liabilities and equity Journal entry worksheet 123 4 Record the entry to close revenue account(s). Note: Enter debits before credits. Date General Journal Debit Credit April 30 Journal entry worksheet 2 4 Record the entry to close expense account(s) Note: Enter debits before credits. Date General Journal Debit Credit April 30 Journal entry worksheet 4 Record the entry to close income summary. Note: Enter debits before credits. Date General Journal Debit Credit April 30 Record entry Clear entry View general journal Journal entry worksheet 2 4 Record the entry to close the withdrawals account Note: Enter debits before credits. Date General Journal Debit Credit April 30 Record entry Clear entry View general journal