Proctoring Enabled: Open Book Accounting Cycle Prob... (i) Saved Help April 2 Nozomi invested \( \$ 46, \theta \in \theta \) cash and computer equipment worth \( \$ 2 b, \theta \in \theta \) in the company in exchange tor its common stock. April 3 The company rented furnished office space by paying \( \$ 3,000 \) cash for the first month's (April) rent. April 4 The company purchased \( \$ 2,000 \) of office supplies for cash. April 10 The company paid \( \$ 2,520 \) 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 \( \$ 12,500 \) cash for commissions revenue. April 28 The company paid \( \$ 1,700 \) cash for two weeks' salaries earned by employees. April 29 The company paid \( \$ 450 \) cash for minor repairs to computer equipment. April 30 The company paid \( \$ 1,400 \) cash for this month's telephone bill. April 30 The company paid \( \$ 1,530 \) cash in dividends. The company's chart of accounts follows: ferences 403 Commissions Revenue Use the following information to prepare adjusting entries: a. Prepaid insurance of \( \$ 140 \) expired this month. b. At the end of the month, \( \$ 700 \) of office supplies are still available. c. This month's depreciation on computer equipment is \( \$ 600 \). d. Employees earned \( \$ 480 \) of unpaid and unrecorded salaries as of month-end. e. The company earned \( \$ 2,400 \) of commissions revenue that is not yet recorded at month-end. Comolete this auestion bv enterina vour answers in the tabs below.

To solve the problem, we will first summarize the transactions and then prepare the adjusting entries based on the provided information. ### Summary of Transactions 1. **April 2**: Nozomi invested \( \$46,000 \) cash and computer equipment worth \( \$2,000 \) in exchange for common stock. 2. **April 3**: Paid \( \$3,000 \) cash for office rent. 3. **April 4**: Purchased office supplies for \( \$2,000 \) cash. 4. **April 10**: Paid \( \$2,520 \) cash for a 12-month insurance policy. 5. **April 14**: Paid \( \$1,700 \) cash for salaries. 6. **April 24**: Collected \( \$12,500 \) cash for commissions revenue. 7. **April 28**: Paid \( \$1,700 \) cash for salaries. 8. **April 29**: Paid \( \$450 \) cash for repairs. 9. **April 30**: Paid \( \$1,400 \) cash for the telephone bill. 10. **April 30**: Paid \( \$1,530 \) cash in dividends. ### Adjusting Entries Now, we will prepare the adjusting entries based on the information provided: 1. **Prepaid Insurance**: - \( \$2,520 \) for 12 months means \( \$210 \) per month. Since \( \$140 \) expired, we will adjust for that. - **Entry**: - Debit: Insurance Expense \( \$140 \) - Credit: Prepaid Insurance \( \$140 \) 2. **Office Supplies**: - Purchased \( \$2,000 \) and \( \$700 \) are still available, so \( \$1,300 \) was used. - **Entry**: - Debit: Supplies Expense \( \$1,300 \) - Credit: Office Supplies \( \$1,300 \) 3. **Depreciation on Computer Equipment**: - Depreciation expense for the month is \( \$600 \). - **Entry**: - Debit: Depreciation Expense \( \$600 \) - Credit: Accumulated Depreciation \( \$600 \) 4. **Unpaid Salaries**: - Employees earned \( \$480 \) of unpaid salaries. - **Entry**: - Debit: Salaries Expense \( \$480 \) - Credit: Salaries Payable \( \$480 \) 5. **Unrecorded Commissions Revenue**: - The company earned \( \$2,400 \) of commissions revenue that is not yet recorded. - **Entry**: - Debit: Accounts Receivable \( \$2,400 \) - Credit: Commissions Revenue \( \$2,400 \) ### Summary of Adjusting Entries 1. **Insurance Expense**: - Debit: \( \$140 \) - Credit: Prepaid Insurance \( \$140 \) 2. **Supplies Expense**: - Debit: \( \$1,300 \) - Credit: Office Supplies \( \$1,300 \) 3. **Depreciation Expense**: - Debit: \( \$600 \) - Credit: Accumulated Depreciation \( \$600 \) 4. **Salaries Expense**: - Debit: \( \$480 \) - Credit: Salaries Payable \( \$480 \) 5. **Accounts Receivable**: - Debit: \( \$2,400 \) - Credit: Commissions Revenue \( \$2,400 \) These entries will ensure that the financial statements reflect the true financial position of the company at the end of April.