Question

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

April		1		Nozomi invested $48,000 cash and computer equipment worth $30,000 in the company.
		2		The company rented furnished office space by paying $1,600 cash for the first month’s (April) rent.
		3		The company purchased $1,900 of office supplies for cash.
		10		The company paid $2,500 cash for the premium on a 12-month insurance policy. Coverage begins on April 11.
		14		The company paid $1,200 cash for two weeks' salaries earned by employees.
		24		The company collected $10,000 cash for commissions earned.
		28		The company paid $1,200 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 $1,050 cash for this month's telephone bill.
		30		Nozomi withdrew $2,400 cash from the company for personal use.

The company's chart of accounts follows:

101	Cash	405	Commissions Earned
106	Accounts Receivable	612	Depreciation Expense—Computer Equip.
124	Office Supplies	622	Salaries Expense
128	Prepaid Insurance	637	Insurance Expense
167	Computer Equipment	640	Rent Expense
168	Accumulated Depreciation—Computer Equip.	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:

1. Prepaid insurance of $139 has expired this month.
2. At the end of the month, $700 of office supplies are still available.
3. This month’s depreciation on the computer equipment is $400.
4. Employees earned $600 of unpaid and unrecorded salaries as of month-end.
5. The company earned $2,050 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 the adjusting entries for the month and prepare the adjusted trial balance.
5a. Prepare the income statement for the month of April 30.
5b. Prepare the statement of owner's equity for the month of April 30.
5c. Prepare the balance sheet at April 30.
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 1

This single question have asked huge details and took more than couple of hour of mine to respond, please review positively. Answer cant be longer than 65,000 character hence i might not able to include full answer.

Prepare journal entries to record the transactions for April :

Date	Accounts	Debit	Credit
1-Apr	Cash	48,000.00
	Computer Equipment	30,000.00
	J. Nozomi, Capital		78,000.00
	(Investment in company)
2-Apr	Rent Expense	1,600.00
	Cash		1,600.00
	(Rent for Apr)
3-Apr	Office Supplies Expense	1,900.00
	Cash		1,900.00
	(Purchase of office supplies)
10-Apr	Prepaid Insurance	2,500.00
	Cash		2,500.00
	(Prepaid Insurance)
14-Apr	Salaries Expense	1,200.00
	Cash		1,200.00
	(Salaries for two week
24-Apr	Cash	10,000.00
	Commissions Earned		10,000.00
	(Commission income)
28-Apr	Salaries Expense	1,200.00
	Cash		1,200.00
	(Salaries for two week
29-Apr	Repairs Expense	350.00
	Cash		350.00
	(For computer repair)
30-Apr	Telephone Expense	1,050.00
	Cash		1,050.00
	(Telephone Exp)
30-Apr	J. Nozomi, Withdrawals	2,400.00
	Cash		2,400.00
	(Cash withdrawal)

Q.2 Post Journal entry to the ledger accounts :

As there are numbers of small ledgers i have prepared some sample on base of which you can create rest :

Cash
Date	Account	Debit	Date	Account	Credit
1-Apr	J. Nozomi, Capital	48,000.00	2-Apr	Rent Expense	1,600.00
24-Apr	Commissions Earned	10,000.00	3-Apr	Office Supplies Expense	1,900.00
			10-Apr	Prepaid Insurance	2,500.00
			14-Apr	Salaries Expense	1,200.00
			28-Apr	Salaries Expense	1,200.00
			29-Apr	Repairs Expense	350.00
			30-Apr	Telephone Expense	1,050.00
			30-Apr	J. Nozomi, Withdrawals	2,400.00
			30-Apr	Balance Carried Forward	45,800.00
		58,000.00			58,000.00
Computer Equipment
Date	Account	Debit	Date	Account	Credit
1-Apr	J. Nozomi, Capital	30,000.00
			30-Apr	Balance Carried Forward	30,000.00
		30,000.00			30,000.00
J. Nozomi, Capital
Date	Account	Debit	Date	Account	Credit
			1-Apr	Cash	48,000.00
			1-Apr	Computer Equipment	30,000.00
30-Apr	Owner's Equity	78,000.00
		78,000.00			78,000.00

Rent Expenses
Date	Account	Debit	Date	Account	Credit
2-Apr	Cash	1,600.00

Repair Expenses
Date	Account	Debit	Date	Account	Credit
29-Apr	Cash	350.00

Q.3 Unadjusted trial balance as of April 30

Accounts	Debit	Credit
Cash	45,800.00
Computer Equipment	30,000.00
J. Nozomi, Capital		78,000.00
Rent Expense	1,600.00
Office Supplies Expense	1,900.00
Prepaid Insurance	2,500.00
Salaries Expense	2,400.00
Commissions Earned		10,000.00
Repairs Expense	350.00
Telephone Expense	1,050.00
J. Nozomi, Withdrawals	2,400.00
Total	88,000.00	88,000.00

Q.4 Adjusting Entries for the Month :

Date	Accounts	Debit	Credit
30-Apr	Insurance Expense	139.00
	Prepaid Insurance		139.00
	(Prepaid insurance transfer for apr)
30-Apr	Office Supplies	700.00
	Office Supplies Expenses		700.00
	(Office Supplies closing balance)
30-Apr	Depreciation Expense—Computer Equip.	400.00
	Computer Equipment		400.00
	(Depreciation)
30-Apr	Salaries Expense	600.00
	Salaries Payable		600.00
	(Accrued Salary)
30-Apr	Account Receivable	2,050.00
	Commissions Earned		2,050.00
	(Commission receivable)

Q.4 Adjusted Trial Balance :

Jiro Nozomi
Adjusted Trial Balance
Accounts	Debit	Credit
Cash	45,800.00
Computer Equipment	29,600.00
J. Nozomi, Capital	0.00	78,000.00
Rent Expense	1,600.00
Office Supplies Expense	1,200.00
Prepaid Insurance	2,361.00
Salaries Expense	3,000.00
Commissions Earned	0.00	12,050.00
Repairs Expense	350.00
Telephone Expense	1,050.00
J. Nozomi, Withdrawals	2,400.00
Insurance Expenses	139.00
Office Supplies	700.00
Depreciation Expense—Computer Equip.	400.00
Salaries Payable		600
Account Receivable	2,050.00
Total	90,650.00	90,650.00

Q.5a Income Statement :

Jiro Nozomi
Income Statement - April
Commissions Earned	12,050.00
Total Revenue	12,050.00
Rent Expense	1,600.00
Office Supplies Expense	1,200.00
Salaries Expense	3,000.00
Repairs Expense	350.00
Telephone Expense	1,050.00
Insurance Expenses	139.00
Depreciation Expense—Computer Equip.	400.00
Total Expenses	7,739.00
Profit	4,311.00

Q.5b :

Statement of Owner's Equity
Accounts	Debit	Credit
J. Nozomi, Capital		78,000.00
J. Nozomi, Withdrawals	2400
Profit		4,311.00
Balance Carried Forward	79,911.00
Total	82,311.00	82,311.00

Jiro Nozomi
Balance Sheet at April 30
Particulars		Amount
Owner's Equity		79,911.00
Salaries Payable		600.00
Total Liabilities		80,511.00
Computer Equipment		29,600.00
Cash		45,800.00
Prepaid Insurance		2,361.00
Office Supplies		700.00
Account Receivable		2,050.00
Total Assets		80,511.00