On August 1, 2020, Mark Diamond began a tour company in the Northwest Territories called Millennium Arctic Tours. The following occurred during the first month of operations: Aug. 1 Purchased office furniture on account: $4,700. 1 Mark Diamond invested $6,700 cash into his new business. 2 Collected $3,450 in advance for a three-week guided caribou watching tour beginning later in August. 3 Paid $5,550 for six months' rent for office space effective August 1. 4 Received $2,700 for a three-day northern lights viewing tour just completed. 7 Paid $1,350 for hotel expenses regarding the August 4 tour, 15 Mark vithdrew cash of $600 for personal use. 22 Met with a Japanese tour guide to discuss a $135,000 tour contract. 31 Paid wages of $1,270. 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.) Journal entry worksheet 6 7 8 9 1 3 Record the purchase of office furniture on account Note: Enter debits before credits. Debit Credit 4,700 Date August 01, 2020 General Journal Office furniture Accounts payable 4,700 View general Journal Clear entry Record entry 3. Post the entries to the accounts; calculate the ending balance in each account. 101:Cash 131:Prepaid Rent Beg bal. Aug 03 5,550 Beg.bal Aug 01 Aug 02 Aug 03 6,700 3,450 6,700 Aug 01 10,150 End bal 5,550 End bal 6.700 161:Office Furniture 162:Accum. Deprec., Office Furniture Beg bal Beg bal 0 End.bal. 0 End.bal 201:Accounts Payable 233:Unearned Revenue Bog bal. Beg bal End.bal. End bal mantal ang laman with awal 301:Mark Diamond, Capital 302:Mark Diamond, Withdrawals Beg bal. Beg bal 0 0 End.bal End.bal. + 401: Revenue 602:Deprec. Exp., Office Furniture Beg bal. Beg bal End.bal, 0 End bal 0 623:Wages Expense 640:Rent Expense Beg bal Beg bal. End.bal 0 End.bal. 0 688:Tolephone Expense 696: Hotel Expenses Beg bal Bog bal End bal 0 End bal 4. Prepare an adjusted trial balance. MILLENNIUM ARTIC TOURS Adjusted Trial Balance + August 31, 2020 Account Title Debit Credit Totals 5-a. Prepare a income statement for month ended August 31, 2020. MILLENNIUM ARTIC TOURS Income Statement For Month Ended August 31, 2020 Operating expenses: Total operating expenses 5-b. Prepare a statement of changes in equity for month ended August 31, 2020. MILLENNIUM ARTIC TOURS Statement of Changes in Equity For Month Ended August 31, 2020 Mark Diamond, capital, August 1 Total Mark Diamond, capital, August 31 5-c. Prepare a balance sheet for month ended August 31, 2020. (Be sure to list the assets and liabilities in order of their liquidity.) MILLENNIUM ARTIC TOURS Balance Sheet August 31, 2020 Assets Total Assets Llabilities Total Liabilities Equity Total liabilities and equity
