Gordon Ramsey spent much of his childhood learning the art of cookie-making from his grandmother. They passed many happy hours mastering every type of cookie imaginable and later creating new recipes that were both healthy and delicious. Now at the start of his second year in college, Ramsey is investigating various possibilities for starting his own business as part of the requirements of the entrepreneurship program in which he is enrolled. The first difficult decision is coming up with the perfect name for his business. In the end, he settles on Maze" and then moves on to more important issues. Ramsey decides to operate Maze" as a proprietorship. He then starts the process of getting the business running. In August 2020, the following activities take place. August 1 Invested $45,000 cash in the business 1 Purchased a delivery van for $40,000, paying $15,000 cash and the remaining balance on account 3 Purchased cookie supplies for $12,000 on account 5 Paid $6,000 on a one-year insurance policy, effective August 1, 2019 12 Billed customers $11,500 for cookie services 18 Paid $10,000 of amount owed on van, and $4,000 of amount owed on cookie supplies 20 Paid $4,200 for employee salaries 21 Collected $5,400 from customers billed on August 12, 2019 Questions (1) Journalize and post the August transactions. (20 + 15 = 35 marks) (2) Prepare a trial balance at August 31. (10 marks) (3) Journalize and post the following adjusting entries (Use trial balance figure from question 2 as opening balance for posting) (10 + 15 = 25 marks) (a) Earned but unbilled fees at August 31, was $2,500. (b) Depreciation on equipment for the month was $200. c) One-twelfth of the insurance expired. (d) An inventory count shows $4,000 of cookie supplies on hand at August 31. (e) Accrued but unpaid employee salaries were $1,800. (4) Prepare an adjusted trial balance at August 31. (10 marks)