Assignment 3 Adjusting Accounts for Financial Statements

Question 1

On August 1, Patrick Hill began a guided tour company out of Terrace BC called Hill Climb Tours. The following occurred during the first month of operations: Aug 1 Purchased office furniture on account; $4,600. 1 Patrick Hill invested $6,600 cash into her new business. 2 Collected $3,300 in advance for a month long guided hunt beginning the last week of August. 3 Paid $5,400 for six months rent for office space effective August 1. 4 Received $2,600 for a three-day northern lights viewing tour just completed. 7 Paid $1,300 for hotel expenses regarding the August 4 tour. 15 Patrick withdrew cash of $400 for personal use. 22 Met with a Japanese tour guide to discuss a $130,000 tour contract. 31 Paid wages of $1,260. 31 The office furniture has an estimated life of three years and a $352 residual value. (assume straight line depreciation) 31 Two-thirds of the August 2 advance has been earned. 31 One month of the Prepaid Rent has been used. 31 The August telephone bill was not received as of August 31 but amounted to $280. Prepare General Journal entries to record the August transactions.

Date		Account Titles and Explanation	PR	Debit	Credit