*use excel and 1ll 10 accounting steps*
On April 1, 2011, Jiro Nozorni created a new travel agency, Adventure Travel. The following transactions
occurred during the company’s first month.
April 1 Nozomi invested $32,000 cash and computer equipment worth $26,000 in the company in
exchange for its 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 $2,500 of office supplies for cash.
10 The company paid $2,502 cash for the premium on a 12-month insurance policy. Coverage begins
on April 11.
14 The company paid $2,300 cash for two weeks’ salaries earned by employees.
24 The company collected $16,000 cash on commissions from airlines on tickets obtained for
28 The company paid $2,400 cash for two weeks’ salaries earned by employees.
29 The company paid $750 cash for minor repairs to the company’s computer.
30 The company paid $550 cash for this month’s telephone bill.
30 The company paid $1,200 cash for dividends.
The company’s chart of accounts follows:
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
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
90 I Income Summary
I. Use the balance column format to set up a ledger account for each account listed in its chart of
1. 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 trial 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.
s. Prepare the income statement and the statement of retained earnings for the month of April and the
balance sheet as of April 30, 2011.
6. Prepare journal entries to close the temporary accounts and post these entries to the ledger.
7. Prepare a post-closing trial balance.