Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In August 1, 2023, Mark Diamond began a tour company in the Northwest Territories called Millennium Arctic Tours. The following ccurred during the first month

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

In August 1, 2023, Mark Diamond began a tour company in the Northwest Territories called Millennium Arctic Tours. The following ccurred during the first month of operations: tug. 1 Purchased office furniture on account; $4,900. 1 Mark Diamond invested $6,900 cash into his new business. 2 Collected $3,750 in advance for a three-week guided caribou watching tour beginning later in August. 3 Paid $5,850 for six months' rent for office space effective August 1. 4 Received $2,900 for a three-day northern lights viewing tour just completed. 7 Paid $1,450 for hotel expenses regarding the August 4 tour. 15 Mark withdrew cash of $400 for personal use. 22 Met with a Japanese tour guide to discuss a $145,000 tour contract. 31 Paid wages of $1,290. Assume Mark Diamond uses the straight-line method to depreciate the assets. Required: 1. Prepare General Journal entries to record the August transactions. (If no entry is required for a particular transaction/event, select 'No journal entry required" in the first account field.) 283. Post the entries to the accounts; calculate the ending balance in each account. \begin{tabular}{|l|l|l|l|} \hline & & & \end{tabular} \begin{tabular}{|l|l|l|} \hline End bal. & & \\ \hline Be2:Mark Diamond, Withdrawals & & \\ \hline Beg.bal. bal. & & \end{tabular} 4. Prepare an unadjusted trial balance at August 31, 2023 5. Using the following information, prepare the adjusting entries on August 31. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.) a. The office furniture has an estimated life of three years and a $760 residual value. Use the straight-line method to depred furniture. b. Two-thirds of the August 2 advance has been earned. c. One month of the Prepaid Rent has been used. d. The August telephone bill was not received as of August 31 but amounted to $310. 6. Prepare an adjusted trial balance. 7-a. Prepare a income statement for month ended August 31, 2023. 7-b. Prepare a statement of changes in equity for month ended August 31, 2023. 7-c. Prepare a balance sheet for month ended August 31, 2023. (Be sure to list the assets and liabilities in order of their liquidity.)

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

Computer Fraud Casebook The Bytes That Bite

Authors: Joseph T. Wells

1st Edition

0470278145, 978-0470278147

More Books

Students also viewed these Accounting questions