Q On August 1st of this year Wendy Allen decided to open a travel agency. The following events took place during his first month of operations: Aug. 1 Allen deposited $40,000 in a bank account in the name of the new business. At the same time, she also transferred to the business some office furniture, which she had owned for several years. The original cost of the furniture had been $8,700, but she thought it had a fair market value of about $3,500 at this point. Aug. 2 Signed a one-year lease for office space at $3,600 per month. Paid the first 3 months lease payment. Aug. 4 Purchased computer equipment for $14,200, on account. Aug. 10 Arranged flight for a business for a client for $7,800. Received $4,000 cash, with the balance due in 30 days. Aug. 14 Wrote a cheque on the business bank account to cover balance due on her personal taxes, $3,900. Aug. 25 Collected $1,000 from the client of Aug. 10th. Aug. 30 Provided services to a new client, Future Shop, which he billed at $10,000. Allen accepted payment as follows: $6,000 cash, plus computer equipment (which had a list price of $5,000 but which Future Shop had on sale for $4,000). Aug. 31 Received her bill for August telephone services. The $960 amount due must be paid by September 15.

REQUIRED: a) Prepare Journal Entries to record the transactions for Allen Travel Agency for the month of August. b) Post the cash transactions to the Cash account in the General Ledger (Account # 110) Allen Travel Agency General Journal Date Account Titles and Explanations PR Debit Credit Cash Account # Date Explanation PR Debit Credit Balance D/C