The following information relates to the business of Man Ting’s Travel Agency for the month of June 2019.

Required

(a) Prepare general journal entries to record the above events, as appropriate, in the accounting records of Man Ting’s Travel Agency. Ignore GST.

(b) Explain why you have made each entry by providing analyses similar to those shown in the illustrative example in the chapter.

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June 1 2 3 6 15 Man Ting Lau invested $120000 cash into the new business. The business set up an office by purchasing some office equipment for $36000 cash. Man Ting hired an assistant to deal with customers for an annual salary of $42000, payable in monthly amounts. The assistant booked a holiday to Europe for a client, Wing Ho, for a total cost of $16000 (unpaid at this stage). The commission to be kept by the business is 10% of the total cost of the trip when Wing Ho pays in full. Wing Ho pays $10000 to Man Ting's Travel Agency. Of this amount, $4200 represents the total cost of air fares, which will be forwarded to the airline concerned; the remainder (excluding the travel agency's commission) is to be forwarded to a particular hotel chain to cover the client's accommodation. 22 The business pays cash to the airline as payment for Wing Ho's trip. 25 The appropriate amount of cash is paid to the hotel chain for Wing Ho's trip. 30 The assistant is paid 1 month's wages in cash.