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 $6,100 cash into his new business. 2. Collected $2,550 in advance for a three-week guided caribou watching tour beginning later in August. Paid $4,650 for six months' rent for office space effective August 1. Received $2,100 for a four-day northern lights viewing tour just completed. Paid $1,050 for hotel expenses regarding the August 4 tour. 15 Mark withdrew cash of $600 for personal use. 3 4 22 Met with a Japanese tour guide to discuss a $100,000 tour contract. 31 Paid wages of $1,210. Required 1. Prepare general journal entries to record the August transactions. 2. Set up the following T-accounts: Cash (101); Prepaid Rent (131); Office Furniture (161); Accumulated Depreciation, Office Furniture (162); Accounts Payable (201); Unearned Revenue (233); Mark Diamond, Capital (301); Mark Diamond, Withdrawals (302); Revenue (401); Depreciation Expense, Office Furniture (602); Wages Expense (623); Rent Expense (640); Telephone Expense (688); and Hotel Expenses (696). 3. Post the entries to the accounts; calculate the ending balance in each account. 4. Prepare an unadjusted trial balance at August 31, 2020.
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 $6,100 cash into his new business. 2. Collected $2,550 in advance for a three-week guided caribou watching tour beginning later in August. Paid $4,650 for six months' rent for office space effective August 1. Received $2,100 for a four-day northern lights viewing tour just completed. Paid $1,050 for hotel expenses regarding the August 4 tour. 15 Mark withdrew cash of $600 for personal use. 3 4 22 Met with a Japanese tour guide to discuss a $100,000 tour contract. 31 Paid wages of $1,210. Required 1. Prepare general journal entries to record the August transactions. 2. Set up the following T-accounts: Cash (101); Prepaid Rent (131); Office Furniture (161); Accumulated Depreciation, Office Furniture (162); Accounts Payable (201); Unearned Revenue (233); Mark Diamond, Capital (301); Mark Diamond, Withdrawals (302); Revenue (401); Depreciation Expense, Office Furniture (602); Wages Expense (623); Rent Expense (640); Telephone Expense (688); and Hotel Expenses (696). 3. Post the entries to the accounts; calculate the ending balance in each account. 4. Prepare an unadjusted trial balance at August 31, 2020.
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter1: Asset, Liability, Owner’s Equity, Revenue, And Expense Accounts
Section: Chapter Questions
Problem 5PA: In April, J. Rodriguez established an apartment rental service. The account headings are presented...
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