On June 1, 2023, Sam Near created a new travel agency called Tours-For-Less. These activities occurred during the company’s first month:

June 1 Near created the new company by investing $40,000 cash, $5,000 of furniture, and computer equipment worth $60,000.
2 The company rented furnished office space by paying $3,200 rent for the first month.
3 The company purchased $2,400 of office supplies for cash.
10 The company paid $7,200 for the premium on a one-year insurance policy.
14 The owner’s assistant was paid $3,600 for two weeks’ salary.
24 The company collected $13,600 of commissions from airlines on tickets obtained for customers.
28 The assistant was paid another $3,600 for two weeks’ salary.
29 The company paid the month’s $3,500 phone bill.
30 The company repaired its computer for $700 on account.
30 The owner withdrew $2,850 cash from the business for personal use.
The company’s chart of accounts included these accounts:
101 Cash
106 Accounts Receivable
124 Office Supplies
128 Prepaid Insurance
160 Furniture
161 Accumulated Depreciation, Furniture
167 Computer Equipment
168 Accumulated Depreciation, Computer Equipment
201 Accounts Payable
209 Salaries Payable
301 Sam Near, Capital
302 Sam Near, Withdrawals
405 Commissions Revenue
610 Depreciation Expense, Furniture
612 Depreciation Expense, Computer Equipment
622 Salaries Expense
637 Insurance Expense
640 Rent Expense
650 Office Supplies Expense
684 Repairs Expense
688 Telephone Expense
901 Income Summary

Required
1. Set up each of the listed accounts. Note: Your instructor will tell you to use either the balance column format or T-accounts.
2. Prepare journal entries to record the transactions for June and post them to the accounts.
3. Use the following information to journalize and post the adjustments for the month:
1. Two-thirds of one month’s insurance coverage was consumed.
2. There were $1,600 of office supplies on hand at the end of the month.
3. Depreciation on the computer equipment was estimated to be $1,650 and $400 on the furniture.
4. The assistant had earned $320 of unpaid and unrecorded salary.
5. The company had earned $3,500 of commissions that had not yet been billed.
4. Prepare an income statement, a statement of changes in equity, and a classified balance sheet.
5. Prepare journal entries to close the temporary accounts and post them to the accounts.
6. Prepare a post-closing trial balance.