Problem $3-14$A Journalizing, posting, adjusted trial balance, adjusting entries $($monthly$),$ financial statements LO$4,5,6,7$

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:

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Aug$\mathrm{.}1$Purchased office furniture on account; $$5,600.$

Aug $1$Mark Diamond invested $$7,400$ cash into his new business.$$

Aug $2$Collected $$4,500$ in advance for a three$-$week guided caribou watching tour beginning later in August.$$

Aug $3$Paid $$6,600$ for six months$$ rent for office space effective August $1.$

Aug $4$Received $$3,400$ for a four$-$day northern lights viewing tour just completed.$$

Aug $7$Paid $$1,700$ for hotel expenses regarding the August $4$ tour.$$

Aug $15$Mark withdrew cash of $$600$ for personal use.$$

Aug $22$Met with a Japanese tour guide to discuss a $$170,000$ tour contract.$$

Aug $31$Paid wages of $$1,340.$

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.$)$

Questions $2$ through $7$C are best viewed by the screenshots.

Prepare an unadjusted trial balance at August $31,2023.$

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.$)$

a$.$ The office furniture has an estimated life of four years and a $$416$ 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 $$360.$

Journal entry worksheet

Record the adjusting entry for depreciation expense of office furniture.

Note: Enter debits before credits.

Prepare an adjusted trial balance.

$7-$a$.$ Prepare a 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.$)$