Emily Lee grew up in Vancouver and loves to be a tourist in her own city. In order to make money to pay for university, she opened a walking tour company, Very Vancouver. The following are transactions for the month of May 2020, the first month of operations.

May 2 Emily moved $5,500 from her personal bank account to a business bank account at TD Bank. She also invested a laptop worth $900 into the business.

May 3 Purchased supplies, including a microphone, and brochures for $600 cash.

May 4 Purchased a printer for $360 on account.

May 5 Purchased a one-year insurance policy for $2,400 cash.

May 6 Emily withdrew $200 for a Mother’s Day gift.

May 8 Interviewed and hired one employee to assist with leading tours.

May 10 Emily launched a social media campaign of Very Vancouver on Facebook. As a result, she received $1,920 of cash for future tour bookings.

May 15 Led three tours of Stanley Park and received $600 cash.

May 25 Led four tours of Granville Island for $1,000. The customers on this tour had prepaid on May 10.

The following information is known at May 31, 2020.

• The laptop has an estimated life of three years.

• The printer has an estimated life of three years.

• There are $200 of supplies that are not used.

• A portion of the insurance policy has expired.

• Wages of $500 were unpaid and unrecorded.

Required

1. Prepare journal entries for the May transactions.

2. Post the journal entries to the general ledger accounts using T-accounts.

3. Prepare and post all required adjusting entries to the T-accounts.

4. Prepare an income statement, statement of changes in equity, and classified balance sheet.

5. Prepare the journal entries for the closing entries and post them to the T-accounts.

6. Prepare a post-closing trial balance.