Problem 3-14A Journalizing, posting, adjusted trial balance, adjusting entries (monthly), financial statements LO4, 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; $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. 3 Paid $4,650 for six months' rent for office space effective August 1. 4 Received $2,100 for a four-day northern lights viewing tour just completed. 7 Paid $1,050 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 $100,000 tour contract. 31 Paid wages of $1,210. 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 three years and a $272 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 $230. 6. Prepare an adjusted trial balance. 7-a. Prepare an 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.)

Problem 3-14A Journalizing, posting, adjusted trial balance, adjusting entries (monthly), financial statements LO4, 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; $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. 3 Paid $4,650 for six months' rent for office space effective August 1. 4 Received $2,100 for a four-day northern lights viewing tour just completed. 7 Paid $1,050 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 $100,000 tour contract. 31 Paid wages of $1,210. 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 three years and a $272 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 $230. 6. Prepare an adjusted trial balance. 7-a. Prepare an 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.)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 54BE

See similar textbooks