Problem $4-1$A $($Algo$)$ Applying the accounting cycle LO P$2$

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 $$49,000$ cash and computer equipment worth $$30,000$ in the company.

April $3$ The company rented furnished office space by paying $$2,800$ cash for the first month$$s $($April$)$ rent.

April $4$ The company purchased $$1,100$ of office supplies for cash.

April $10$ The company paid $$2,900$ cash for 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.

April $24$ The company collected $$9,500$ cash for commissions revenue.

April $28$ The company paid $$1,700$ cash for two weeks' salaries earned by employees.

April $29$ The company paid $$550$ cash for minor repairs to computer equipment.

April $30$ The company paid $$900$ cash for this month's telephone bill.

April $30$ Nozomi withdrew $$1,700$ 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 $$161$ expired this month.

At the end of the month, $$700$ of office supplies are still available.

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

Employees earned $$320$ of unpaid and unrecorded salaries as of month$-$end.

The company earned $$1,750$ of commissions revenue that is not yet recorded at month$-$end.

Required:

$1.$ & $2.$ Prepare journal entries to record the transactions for April and post them to ledger accounts in Req $6$B GL tab. The company records prepaid and unearned items in balance sheet accounts.

$3.$ Using account balances from Requirement $6$b$,$ prepare an unadjusted trial balance as of April $30.$

$4.$ Journalize the adjusting entries for the month, and then post to the ledger on Req $6$B tab, using April $30$ Adjusted as the date.

$5$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 $30.$

$6$a$.$ Prepare journal entries to close the temporary accounts and then post to Req $6$B GL tab, using April $30$ Close as the date.

$6$b$.$ Post the journal entries to the ledger.

$7.$ Prepare a post$-$cl Check

balance totals, $$189,800$

$(40)$ Dr$.$ Insurance Expense,

$$400$

$(5)$ Net income, $$2,725$; Total

assets, $$180,825$

$(7)$ P$-$C trial balance totals,

$$182,325$

$[$continued from preceding page$]$

Required

Use the balance column format to set up each ledger account listed in its chart of accounts.

Prepare journal entries to record the transactions for July and post them to ledger accounts.

Prepare an unadjusted trial balance as of July $31.$

Use the following information to journalize and post adjusting entries for the month.

a$.$ Prepaid insurance of $$400$ expired this month.

b$.$ At the end of the month, $$1,525$ of office supplies are still available.

c$.$ This month's depreciation on buildings is $$1,500.$

d$.$ An employee earned $$100$ of unpaid and unrecorded salary as of month$-$end.

e$.$ The company earned $$1,150$ of storage revenue that is not yet recorded at month$-$end.

Prepare the adjusted trial balance as of July $31.$ Prepare the income statement and the statement of

owner's equity for the month of July and the balance sheet at July $31.$

Prepare journal entries to close the temporary accounts and post these entries to the ledger.

Prepare a post$-$closing trial balance.

Problem $4-2$B The following unadjusted trial balance is for Power Demolition Company at its April $30$ current fiscalosing trial balance.