Problem $3-14$A Journalizing, posting, adjusted trial balance, adjusting entries $($monthly$),$ financial statements LO$4,5,6,7$

On August $1,2023,$ 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; $$5,900.$

$1$ Mark Diamond invested $$7,700$ cash into his new business.

$2$ Collected $$4,950$ in advance for a three$-$week guided caribou watching tour beginning later in August.

$3$ Paid $$7,050$ for six months$$ rent for office space effective August $1.$

$4$ Received $$3,700$ for a four$-$day northern lights viewing tour just completed.

$7$ Paid $$1,850$ for hotel expenses regarding the August $4$ tour.

$15$ Mark withdrew cash of $$600$ for personal use.

$22$ Met with a Japanese tour guide to discuss a $$185,000$ tour contract.

$31$ Paid wages of $$1,370.$

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.$)$

$2$&$3.$ Post the entries to the accounts; calculate the ending balance in each account.

$4.$ 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.$)$

The office furniture has an estimated life of four years and a $$572$ residual value. Use the straight$-$line method to depreciate the furniture.

Two$-$thirds of the August $2$ advance has been earned.

One month of the Prepaid Rent has been used.

The August telephone bill was not received as of August $31$ but amounted to $$390.$

$6.$ 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.$)$