Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Emily Lee grew up in Vancouver and loves to be a tourist in her own city. In order to make money to pay for university,

Emily Lee grew up in Vancouver and loves to be a tourist in her own city. In order to make money to pay for university, she opened a walking tour company, Very Vancouver. The following are transactions for the month of May 2023, the first month of operations.
May 1 Emily moved $7,500 from her personal bank account to a business bank account at TD Bank. She also invested a laptop worth $864 into the business.
May 1 Purchased a one-year insurance policy for $1,440 cash.
May 3 Purchased supplies, including a microphone, and brochures for $675 cash.
May 4 Purchased a printer for $324 on account.
May 6 Emily withdrew $232 for a Mothers Day gift.
May 8 Interviewed and hired one employee to assist with leading tours.
May 10 Emily launched a social media campaign of Very Vancouver on Facebook. As a result, she received $2,155 of cash for future tour bookings.
May 15 Led three tours of Stanley Park and received $610 cash.
May 25 Led four tours of Granville Island, for $1,205. The customers on this tour had prepaid on May 10.
The following information is known at May 31,2023.
The laptop has an estimated life of three years.
The printer has an estimated life of three years.
There are $225 of supplies that are not used.
A portion of the insurance policy has expired.
Wages of $895 were unpaid and unrecorded.
Required
1-a. Prepare journal entries for the May transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1-b. Prepare the adjusting entries. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)
1-c. Prepare the closing entries. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)
2. Post the above journal entries to the T-accounts.
3. Prepare a post-closing trial balance. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)
4. Prepare an income statement and statement of changes in equity for the month ended May 31,2023.(Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)
5. Prepare a classified balance sheet at May 31,2023.(Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Tools For Business Decision Making

Authors: Paul D. Kimmel

3rd Edition

0470377852, 978-0470377857

More Books

Students also viewed these Accounting questions

Question

=+c) Compute the CV and RRR for each decision.

Answered: 1 week ago

Question

plan how to achieve impact in practice from your research;

Answered: 1 week ago