Reference no: EM13824719

Question-

On June 1 2011 Sam Near created a new travel agency called Tours-For-Less. These activities occurred during the company's first month:

June1 Near created the new company by investing $40,000 cash, $5,000 of furniture, and computer equipment worth $60,000.

2 The company rented furnished office space by paying $3,200 rent for the first month.

3 The company purchased $2,400 of office supplies for cash.

10 The company paid $7,200 for the premium on a one-year insurance policy.

14 The owner's assistant was paid $3,600 for two weeks' salary.

24 The company collected $13,600 of commissions from airlines on tickets obtained for customers.

28 The assistant was paid another $3,600 for two weeks' salary.

29 The company paid the month's $3,500 phone bill.

30 The company repaired its computer for $700 on account

30 The owner withdrew $2,850 cash from the business for personal use.

The company's chart of accounts included these accounts:

101 Cash	302 Sam Near, Withdrawals
106 Accounts Receivable	405 Commissions Earned
124 Office Supplies	610 Depreciation Expense, Furniture
128 Prepaid Insurance	612 Depreciation Expense, Computer Equipment
160 Furniture
161 Accumulated Depreciation, Furniture	622 Salaries Expense
167 Computer Equipment	637 Insurance Expense
168 Accumulated Depreciation, Computer Equipment	640 Rent Expense
	650 Office Supplies Expense
201 Accounts Payable	684 Repairs Expense
209 Salaries Payable	688 Telephone Expense
301 Sam Near, Capital	901 Income Summary

Required

1. Prepare journal entries to record the transactions for June and post them to the accounts.

2. Use the following information to journalize and post the adjustments for the month:

3. Two-thirds of one month's insurance coverage was consumed.

4. There were $1,600 of office supplies on hand at the end of the month.

5. Depreciation on the computer equipment was estimated to be $1,650 and $400 on the furniture.

6. The assistant had earned $320 of unpaid and unrecorded salary.

7. The company had earned $3,500 of commissions that had not yet been billed.

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

9. Prepare journal entries to close the temporary accounts and post them to the accounts.

10. Prepare a post-closing trial balance.

Additional information-

The question relates to Accounting and it discusses about preparing journal entries, posting the entries into particular accounts and preparing a trial balance for given details.