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On June 1 2014 Sam Near created a new travel agency called Tours-For-Less These activities occurred during the company s first month June 1 Near created the new company by investing $40000 cash

On June 1, 2014, Sam Near created a new travel agency called Tours-For-Less. These activities occurred during the company s first month: June 1 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 $1 3,600 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: Required 1. Set up each of the listed accounts. Note: Your instructor will tell you to use either the balance column format or T-accounts. 2. Prepare journal entries to record the transactions for June and post them to the accounts. 3. Use the following information to journalize and post the adjustments for the month: a. Two-thirds of one month s insurance coverage was consumed. b. There were $1,600 of office supplies on hand at the end of the month. c. Depreciation on the computer equipment was estimated to be $1,

Apr 24 2020 View more View Less

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