Emily Lee grew up in Vancouver and loves to be a tourist in her own city. In ord

Question

Emily Lee grew up in Vancouver and loves to be a tourist in her own city. In order to make money to pay for university, she opened a walking tour company, Very Vancouver. The following are transactions for the month of May 2017, the first month of operations.

May 2 Emily moved $9,550 from her personal bank account to a business bank account at TD Bank. She also invested a laptop worth $1,332 into the business.
May 3 Purchased supplies, including a microphone, and brochures for $855 cash.
May 4 Purchased a printer for $324 on account.
May 5 Purchased a one-year insurance policy for $2,160 cash.
May 6 Emily withdrew $214 for a Mother’s Day gift.
May 8 Interviewed and hired one employee to assist with leading tours.
May 10 Emily launched a social media campaign of Very Vancouver on Facebook. As a result, she received $2,125 of cash for future tour bookings.
May 15 Led three tours of Stanley Park and received $1,020 cash.
May 25 Led four tours of Granville Island, for $1,170. The customers on this tour had prepaid on May 10.

The following information is known at May 31, 2017.
• The laptop has an estimated life of three years.
• The printer has an estimated life of three years.
• There are $285 of supplies that are not used.
• A portion of the insurance policy has expired.
• Wages of $625 were unpaid and unrecorded.

Required
1-a. Prepare journal entries for the May transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1-b. Prepare the adjusting entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1-c. Prepare the closing entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
2. Post the above journal entries to the T-accounts.

3. Prepare a post-closing trial balance.

4. Prepare an income statement and statement of changes in equity for the year ended May 31, 2017.
5. Prepare a classified balance sheet at May 31, 2017. (Be sure to list the assets and liabilities in order of their liquidity.)

Explanation / Answer

Date

Date

Account Title Debit Credit 2-May Cash $ 9,550.00 Emily's Capital $ 9,550.00 2-May Office Equipment $ 1,332.00 Emily's Capital $ 1,332.00 3-May Supplies $     855.00 Cash $     855.00 4-May Office Equipment $     324.00 Cash $     324.00 5-May Insurance expense $ 2,160.00 Cash $ 2,160.00 6-May Emily's Drawings $     214.00 Cash $     214.00 8-May No entry 10-May Cash $ 2,125.00 Unearned Tour revenue $ 2,125.00 15-May Cash $ 1,020.00 Tour Revenue $ 1,020.00 25-May Unearned Tour revenue $ 1,170.00 Tour Revenue $ 1,170.00 ADJUSTMENT ENTRIES 31-May Depreciation-Office Equipment $       46.00 Acc.depn.-Office equipment $       46.00 (1332+324))/3*1/12(St.line depn.) 31-May Supplies expense $     570.00 Supplies $     570.00 31-May Unexpired Insurance 180      Insurance expense $     180.00 31-May Wages $     625.00 Wages Payable $     625.00

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