Subpart to be solved. First, three has been solved, the remaining part needs to be solved. ASSIGNMENT #2 - Journalizing, posting, adjusted trial balance, adjusting entries (monthly), financial statementsOn 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.Purchased office furniture on account; $4,700.1Mark Diamond invested $6,100 cash into his new business.Collected $2,550 in advance for a three-week guided caribou watching tour beginning later in August.3.Paid $4,650 for six months' rent for office space effective August 1.4Received $2,100 for a four-day northern lights viewing tour just completed.Paid $1,050 for hotel expenses regarding the August 4 tour.Mark withdrew cash of $600 for personal use.1522Met with a Japanese tour guide to discuss a $100,000 tour contract.31Paid wages of $1,210.Required1. Prepare general journal entries to record the August transactions.2. Set up the following T-accounts: Cash (101); Prepaid Rent (131); Office Furniture (161); AccumulatedDepreciation, Office Furniture (162); Accounts Payable (201); Unearned Revenue (233); Mark Diamond, Capital(301); Mark Diamond, Withdrawals (302); Revenue (401); Depreciation Expense, Office Furniture (602); WagesExpense (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, 2020.5. Use the following information to prepare and post adjusting entries on August 31:a. The office furniture has an estimated life of three years and a $272 residual value. Use the straight-linemethod to depreciate the furniture.b. Two-thirds of the August 2 advance has been earned.c. One month of the Prepaid Rent has been used.d. The August telephone bill was not received as of August 31 but amounted to $230.6. Prepare an adjusted trial balance.7. Prepare an income statement, a statement of changes in equity, and a balance sheet.Analysis Component: When a company shows revenue on its income statement, does this mean that cash equal torevenues was received during the period in which the revenues were reported?

Trial Balance is a part of financial statements of a company which shows the ledger accounts…

4. Prepare an unadjusted trial balance at August 31, 2020. 5. Use the following information to prepare and post adjusting entries on August 31: a. The office furniture has an estimated life of three years and a $272 residual value. Use the straight-line method to depreciate the furniture. b. Two-thirds of the August 2 advance has been earned. c. One month of the Prepaid Rent has been used. d. The August telephone bill was not received as of August 31 but amounted to $230. 6. Prepare an adjusted trial balance.