On August 1, 2020, Mark Diamond began a tour company in the Northwest Territories called Millennium Arctic Tours. The following occurred during the first month of operations: Aug. 1 Purchased office furniture on account; $5,500. 1 Mark Diamond invested $7,300 cash into his new business. 2 Collected $4,350 in advance for a three-week guided caribou watching tour beginning later in August. 3 Paid $6,450 for six months' rent for office space effective August 1. 4 Received $3,300 for a four-day northern lights viewing tour just completed. 7 Paid $1,650 for hotel expenses regarding the August 4 tour. 15 Mark withdrew cash of $500 for personal use. 22 Met with a Japanese tour guide to discuss a $165,000 tour contract. 31 Paid wages of $1,330. Assume Mark Diamond uses the straight-line method to depreciate the assets. Required: 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.) 2. Using the following information, prepare the adjusting entries on August 31. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.) a. The office furniture has an estimated life of four years and a $364 residual value. Use the straight-line method to depreciate the furniture. b. Two-thirds of the August 2 advance has been earned. C. One month of the Prepaid Rent has been used. d. The August telephone bill was not received as of August 31 but amounted to $350. 3. Post the entries to the accounts; calculate the ending balance in each account. 4. Prepare an adjusted trial balance. 5-a. Prepare a income statement for month ended August 31, 2020. MILLENNIUM ARTIC TOURS Income Statement For Month Ended August 31, 2020 Revenue Operating expenses: Wages expense Rent expense Telephone expense Hotel expense Total operating expenses 0 Loss $ 0 5-b. Prepare a statement of changes in equity for month ended August 31, 2020. MILLENNIUM ARTIC TOURS Statement of Changes in Equity For Month Ended August 31, 2020 Mark Diamond, capital, August 1 Add: Investments by owner $ 7,300 Add: Profit 7,300 7,300 Total Less: Withdrawals by owner 0 Less: Investments by owner Mark Diamond, capital, August 31 5-c. Prepare a balance sheet for month ended August 31, 2020. (Be sure to MILLENNIUM ARTIC TOURS Balance Sheet August 31, 2020 Assets Cash $ 5,020 5,375 Prepaid rent Office furniture $ 5,500 (107) Less: Accumulated depreciation Total Assets $ 10,395 Liabilities Accounts payable $ 5,850 1,825 Unearned revenue Telephone expense 350 Total Liabilities $ 8,025 Equity Mark Diamond, capital Mark Diamond, withdrawals Total liabilities and equity 7,300 (500) 14,825 $