Problem #1 On June 1, 2020, 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 3 10 14 24 28 29 30 30 The company rented furnished office space by paying $3,200 rent for the first month. The company purchased $2,400 of office supplies for cash. The company paid $7,200 for the premium on a one-year insurance policy. The owner's assistant was paid $3,600 for two weeks' salary. The company collected $13,600 of commissions from airlines on tickets obtained for customers. The assistant was paid another $3,600 for two weeks' salary. The company paid the month's $3,500 phone bill. The company repaired its computer for $700 on account. 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 Depreciation Expense, Furniture Depreciation Expense, Computer Equipment 610 612 622 Salaries Expense 637 Insurance Expense 640 Rent Expense 650 Office Supplies Expense 684 Repairs Expense 688 901 Telephone Expense 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: a. Two-thirds of one month's insurance coverage was consumed. b. There were $1,600 of office supplies on hand at the end of the month. c. Depreciation on the computer equipment was estimated to be $1,650 and $400 on the furniture. d. The assistant had earned $320 of unpaid and unrecorded salary. e. The company had earned $3,500 of commissions that had not yet been billed.

On June 1, 2020, Sam Near created a new travel agency called Tours-For-Less. These activities occurred during the company's first month: The company's chart of accounts included these accounts: 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: a. Two-thirds of one month's insurance coverage was consumed. b. There were $1,600 of office supplies on hand at the end of the month. c. Depreciation on the computer equipment was estimated to be $1.650 and $400 on the furniture. d. The assistant had earned $320 of unpaid and unrecorded salary. e. The company had earned $3,500 of commissions that had not yet been billed