On April 1, 2009, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month.
April 1 Nozomi invested $32000 cash and computer equipment worth $26000 in the
company in exchange for common stock
2 The company rented furnished office space by paying $1,300 cash for the first
Month's (April) rent.
3 The company purchased $2502 of office supplies for cash
10 The company paid $2502 cash for premium on a 12 month insurance policy.
Coverage begins on April 11
14 The company paid $2300 cash for 2 two weeks salaries earned by employees
24 The company collected $16000 cash on commissions from airlines on tickets
Obtained for customers
28 The company paid $2400 cash for two weeks salaries earned by employees
29 The company paid $750 cash for minor repairs to the company's computers
30 The company paid $550 cash for this month's telephone bill
30 The company paid $1200 cash for 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 deprecation expense ' computer equip.
622 salaries
637 insurance expense
640 rent expense
650 office supplies expense
684 repairs expense
688 telephone expense
901 income summary

REQUIRED
1. Use the balance column format to set up a ledger account for each account listed in its chart of accounts.
2. Prepare journal entries to record the April transactions and post them to the ledger accounts. The company records prepaid and unearned items in balance sheet accounts.
3. Prepare an unadjusted trail balance as of April 30.
4. Use the following information to journalize and post adjusting entries for the month.
a) Two-thirds 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 $720 of unpaid and unrecorded salaries as of month-end.
e) The company earned $3,050 of commissions that are not yet billed at month-end.
5. Prepare the income statement and the statement of retained earnings for the month of April and the balance sheet as of April 30, 2009.
6. Prepare journal entries to close the temporary accounts and post these entries to the ledger.
7. Prepare a post-closing trial balance.