Accounting Cycle Project

You are requested to use your assumed business to prepare a 9 Step accounting cycle project which include the 9 steps.

Complete on this one Please with the Missing Steps - Step 2 till step 9 for this Data

Started new business Alnaqbi for Football Training. Following transaction are made in the month of August 2020.

Transactions

1. You contribute $4,000 in cash to start the business.

2. You purchase $500 worth of equipment for use during classes

3. You purchase liability insurance at a total cost of $1,200. The policy covers September 1 through December31 paid on 08-03-2020.

4. You receive cash totaling $800 for classes

5. Your instructor teaches classes for the month. You agree to pay $600 for the classes. $300 is paid on August 31, and $300 will be paid on September 15.

6. You pay rent for august of $1,000 on August 31.

7. You use utilities (electricity and water) totaling $200. This amount is payable on September 15.

You purchase an additional $400 worth of mats, equipment, and clothing for sale

8. You sell inventory costing $150 for a revenue of $225

9. You are worried about money, so your Uncle makes you an offer. He agrees to loan you $2,000 in cash. You will need to repay him sometime later, but he doesnt say when

10. After borrowing money, you decide to withdraw some of your investment in the studio to pursue other opportunities. You decide to withdraw $1,000.

11. Depreciation @ $20/month.

Step 1 Analyze Business Transactions (Accounting Cycle):

Accounting Equation: Assets = Liabilities + Stockholders Equity

Business activity will impact various asset, liability, and/or equity accounts without disturbing the equality of the accounting equation.

Transactions	Explaination	Impact on Accounting Equation
1. You contribute $4,000 in cash to start the business.	Cash 4,000, Contributed Capital 4,000	Assets(+4000)=Equity(+4000)
2. You purchase $500 worth of equipment for use during classes	Cash -500, PPE 500	Assets(+500), Assets(-500)
3. You purchase liability insurance at a total cost of $1,200. The policy covers September 1 through December31 paid on 08-03-2020	Cash -1,200, Prepaid Insurance 1,200	Assets(+1200), Assets(-1200)
4. You receive cash totaling $800 for classes	Cash 800, Service Revenue 800	Assets(+800)= Equity(+800)
5. Your instructor teaches classes for the month. You agree to pay $600 for the classes. $300 is paid on August 31, and $300 will be paid on September 15.	Cash -300, Wage Payable 300, Instructor Expense 600	Assets(-300)=Liabilities(+300)+Equity(-600)
6. You pay rent for august of $1,000 on August 31.	Cash -1,000, Rent Expense 1,000	Assets(-1000)=Equity(-1000)
7. You use utilities (electricity and water) totaling $200. This amount is payable on September 15.	Utility Payable 200, Utility Expense 200	Liability(+200)+Equity(-200)
You purchase an additional $400 worth of mats, equipment, and clothing for sale	Cash -400, Inventory 400	Assets(+400), Assets(-400)
8. You sell inventory costing $150 for a revenue of $225	a.Cash 225, Sales Revenue 225 b.Inventory -150, Cost of Goods Sold 150	a. Assets(+225)=Equity(+225) b. Assets(-150)=Equity(-150)
9. You are worried about money, so your Uncle makes you an offer. He agrees to loan you $2,000 in cash. You will need to repay him sometime later, but he doesnt say when	Cash 2,000, Loan Payable 2,000	Assets(+2000)=Liabilities(+2000)
10. After borrowing money, you decide to withdraw some of your investment in the studio to pursue other opportunities. You decide to withdraw $1,000.	Cash -1,000, Contributed Capital -1,000	Assets(-1000)=Equity(-1000)

11. Depreciation @ $20/month.

Accumulated Depreciation 20, Depreciation Expense 20

Assets(-20)=Equity(-20)

The Accounting Cycle Learning Objective 4 State the required steps in the accounting cycle. 1. Analyze business transactions 9. Prepare a post-closing trial balance 2. Journalize the transactions 8. Journalize and post closing entries 3. Post to ledger accounts 7. Prepare financial statements 4. Prepare a trial balance 6. Prepare an adjusted trial balance 5. Journalize and post adjusting entries 4-1 Illustration 4-11 Steps in the accounting cycle LO4