After a number of years as a successful teacher at a nationally recognised university, you decide to quit the job and open your own training institute. You decide that your neighbourhood would be the perfect place to open a training institute. Even better, your friend Jack, a certified trainer and assessor, has just moved to town and is willing to teach at the institute. You hurriedly prepare to open the centre, Sydney Institute, by July 1, 2022.

In preparation for your opening, you engage in the following transactions on July 1, 2022:

1. You contribute $25,000 in cash to start the business.

2. You purchase $6,000 worth of equipment for use during classes for cash.

3. You purchase an additional $2,500 worth of textbooks for cash.

4. You purchase liability insurance at a total cost of $2,400. The policy covers July 1, 2022 through to 31 Dec, 2022.

The following transactions took place during July 2022

Date	Transaction
Jul 5	You collected $8,000 in total from new students as material and tuition fee for July 2022 in cash.
15	Jack, the trainer and assessor is paid $4,000 as salary for July 2022.
20	Rent is paid for the month of July 2022 in cash $3,500.
30	You received the bills for electricity $250 and telephone $100 for the month of July. This will be paid on Aug 15, 2022.

The following transactions took place during Aug 2022

Date	Transaction
Aug 5	You collected $8,000 in total from students as material and tuition fees in cash. Of this amount, $4,200 is for classes that students will attend in Aug and $3,800 is for classes that they will attend in Sept 2022.
15	Jack, the trainer and assessor earns $4,000 for teaching in Aug 2022. Of this amount, $2,000 is paid on Aug 15, 2022 and the remaining $2,000 will be paid on Sept 15, 2022.
17	Sold textbooks for $800 in cash. The cost of the books sold is $500.
19	You were running low on cash, so you borrowed $12,000 in cash from your local bank. This loan will have to be repaid after 3 years.
20	Rent is paid for the month of Aug 2022 in cash $3,500.
25	A student who had paid $1,500 for classes in Aug was very dissatisfied with her classes. She wanted a refund. You agreed to refund the $1,500 paid by the student.
27	You received the bills for electricity $320 and telephone $120 for the month of Aug. This will be paid on Sept 15, 2022.
28	You withdrew $2,700 of your investment from the business to pay for your personal expenses.

Required:

1. Record the transactions in the general journal of Sydney Institute.
2. Post the general journal entries to the ledger accounts.
3. Journalise and post adjusting entries.
4. Journalise and post, closing entries.
5. Prepare a post-closing trial balance.
6. Prepare the Income Statement for Sydney Institute for the period ending 31 Aug 2022.
7. Prepare the Balance Sheet for Sydney Institute as at 31 Aug 2022.
8. Evaluate the financial performance of Sydney Institute using at least one profitability ratio.