Prepare a balance sheet for month ended August 31, 2014. (Be sure to list the as
ID: 2558512 • Letter: P
Question
Prepare a balance sheet for month ended August 31, 2014. (Be sure to list the assets and liabilities in order of their liquidity.)
On August 1, 2014, Delanie Tugut began a tour company in the Northwest Territories called Tugut Arctic Tours. The following occurred during the first month of operations Aug. 1 Purchased office furniture on account; $5,300. 1 Delanie Tugut invested $7,100 cash into her new business. 2 Collected $4,050 in advance for a three-week guided caribou hunt beginning the last week of August. 3 Paid $6,150 for six months' rent for office space effective August 1. 4 Received $3,100 for a four-day northern lights viewing tour just completed. 7 Paid $1,550 for hotel expenses regarding the August 4 tour. 15 Delanie withdrew cash of $600 for personal use. 22 Met with a Japanese tour guide to discuss a $155,000 tour contract. 31 Paid wages of $1,310Explanation / Answer
PREPARATION OF TRIAL BALANCE Ref Date Account Debit Credit 2 1-Aug Cash $7,100 3 2-Aug Cash $4,050 4 3-Aug Cash $6,150 5 4-Aug Cash $3,100 6 7-Aug Cash $1,550 7 15-Aug Cash $600 9 31-Aug Cash $1,310 Ending Balance of cash $4,640 4 3-Aug Prepaid Rent $5,125 3 31-Aug Prepaid Rent $1,025 Ending Balance of Prepaid rent $4,100 1 1-Aug Office furniture $5,300 1 31-Aug Office furniture $105 Ending balance-Office furniture $5,195 1 1-Aug Accounts payable $5,300 4 31-Aug Accounts payable $330 Ending balance-Accountsc payable $5,630 3 2-Aug Unearned revenue $4,050 2 31-Aug Unearned revenue $2,700 Ending Balance-Unearned revenue $1,350 2 1-Aug Owner'sCapital $7,100 7 15-Aug Withdrawal $600 5 4-Aug Revenue $3,100 2 31-Aug Revenue $2,700 Ending balance Revenue $5,800 4 3-Aug Rent expense $1,025 3 31-Aug Rent expense $1,025 Ending Balance-Rent expense $2,050 6 7-Aug Hotel expense $1,550 9 31-Aug Wage expense $1,310 1 31-Aug Depreciation expense-Office furniture $105 4 31-Aug Telephone expense $330 Trial Balance Account Debit Credit Cash $4,640 Prepaid Rent $4,100 Office furniture $5,195 Accounts payable $5,630 Unearned revenue $1,350 Owner'sCapital $7,100 Withdrawal $600 Revenue $5,800 Rent expense $2,050 Hotel expense $1,550 Wage expense $1,310 Depreciation expense-Office furniture $105 Telephone expense $330 Total $19,880 $19,880 INCOME STATEMENT For the month of august,2014 Revenue $5,800 Rent expense $2,050 Hotel expense $1,550 Wage expense $1,310 Depreciation expense-Office furniture $105 Telephone expense $330 Total expenses $5,345 Income from operations $455 BALANCE SHEET For the month ended August 31, 2014 Assets: Cash $4,640 Prepaid Rent $4,100 Office furniture $5,195 Total assets $13,935 Liabilities: Accounts payable $5,630 Unearned revenue $1,350 Total Liabilities $6,980 Owners Equity: Owner'sCapital $7,100 Withdrawal ($600) Retained earnings $455 Total owners equity $6,955 Total Liabilities and owners equity $13,935