8:26 .ill 91% Acct.+130++Home+...+Accounting+Cycle - Saved Homework - Accounting 130- FIRST SEMESTER 2020/2021 steps of the Accounting Cycle: Mr. John established his Dry Clean business "The White Rose" on January 1, 2017. During the month of January, the business had the following transactions: January 1- The owner Mr. John invested $ 15,000 in his business by depositing this amount in the bank, into the bank account of the business. January 2- The White Rose paid the rent for six months in advance. The amount paid was $3000. January 5- The White Rose got a bank loan amounting to $ 10,000. That was in return for a note payable, as the loan and its interest are to be settled (paid) after 6 months. Interest rate is 6% annual. January 6- The White Rose purchased Machinery for $ 12,000. It paid $ 8,000 cash, while the remaining amount is to be paid in March. January 10- The White Rose purchased Supplies for $1500, paid $ 700 Cash, and the remaining is on account. January 15- The White Rose signed an agreement with a small hotel called "The Star" to provide dry clean services for the hotel's customers for one year. A down payment of $ 2500 was received in cash from the hotel. January 31- White rose has provided services for customers for $ 4500 during the month (excluding the services for Star Hotel). It collected $ 3800 in cash, while the remaining will be settled by customers in February. January 31- The business paid the following expenses for the month: Utilities bills for $ 350. Salaries for $ 450. January 31- The owner, Mr. John, withdrew $ 1000 from the business for personal use. In addition, the following information was available on the 31 of January: The amount of supplies consumed (used) during the month of January was $ 300. The interest on the note payable for January amounted to $50. Depreciation Expense on the Equipment for the month amounted to $ 200. It was found that services in the amount of $ 650 were performed, but were never billed, or received from customers (this means were never recorded). The white Rose has provided services to the Star Hotel, amounting to $ 1000 during January, 2017. 1