On August 1, 2014, Delanie Tugut began a tour company in the Northwest Territori

Question

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 $1,310. 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.)

Explanation / Answer

Date Title Debit Credit Aug-01 Office furnitures $5,300 Accounts payable $5,300 (To record purchase of office furniture on account) Aug-01 Cash $7,100 Capital $7,100 (To record capital received from Belanie Tugut) Aug-02 Cash $4,050 Unearned revenue ($4,050/3*2) $2,700 Service revenue $1,350 (To record advance received for 3 week guided caribou hunt beginning the last week of august) Aug-03 Rent expenses ($6,150/6*1) $1,025 Prepaid rent ($6,150/6*5) $5,125 Cash $6,150 (To record six months rent for office space) Aug-04 Cash $3,100 Service revenue $3,100 (To record receipt of service revenue) Aug-07 Hotel expenses $1,550 Cash $1,550 (To record payment of hotel expenses related to tour) Aug-15 Capital withdrawals $    600 Cash $    600 (To record withdrawal for personal use) Aug-22 No entry required Aug-31 Wages expenses $1,310 Cash $1,310 (To record wages expenses)

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