Required:
1. & 2. Prepare journalentries to record the transactions for April and post them to theledger accounts in Requirement 6b. The company records prepaid andunearned 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 forthe month and prepare the adjusted trial balance.
5a. Prepare the income statement for the month ofApril 30, 2017.
5b. Prepare the statement of retained earnings forthe month of April 30, 2017.
5c. Prepare the balance sheet at April 30,2017.
6a. Prepare journal entries to close the temporaryaccounts and then post to Requirement 6b.
6b. Post the journal entries to the ledger.
7. Prepare a post-closing trial balance.

On April 1, 2017, Jiro Nozomi created a new travel agency,Adventure Travel. The following transactions occurred during thecompany’s first month.

April		1		Nozomi invested $45,000 cash andcomputer equipment worth $25,000 in the company in exchange forcommon stock.
		2		The company rented furnished officespace by paying $1,900 cash for the first month’s (April)rent.
		3		The company purchased $1,600 ofoffice supplies for cash.
		10		The company paid $2,500 cash forthe premium on a 12-month insurance policy. Coverage begins onApril 11.
		14		The company paid $800 cash for twoweeks' salaries earned by employees.
		24		The company collected $17,500 cashon commissions from airlines on tickets obtained forcustomers.
		28		The company paid $800 cash for twoweeks' salaries earned by employees.
		29		The company paid $450 cash forminor repairs to the company's computer.
		30		The company paid $1,500 cash forthis month's telephone bill.
		30		The company paid $2,500 cash individends.

The company's chart of accounts follows:

101	Cash	405	CommissionsEarned
106	Accounts Receivable	612	Depreciation Expense—ComputerEquip.
124	Office Supplies	622	Salaries Expense
128	Prepaid Insurance	637	Insurance Expense
167	Computer Equipment	640	Rent Expense
168	AccumulatedDepreciation—Computer Equip.	650	Office Supplies Expense
209	Salaries Payable	684	Repairs Expense
307	Common Stock	688	Telephone Expense
318	Retained Earnings	901	Income Summary
319	Dividends

Use the following information:

Two-thirds (or $139) of one month’s insurance coverage hasexpired.

At the end of the month, $400 of office supplies are stillavailable.

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

Employees earned $560 of unpaid and unrecorded salaries as ofmonth-end.

The company earned $1,800 of commissions that are not yet billedat month-end.