Assumption: -

Sydney Dance Academy

After a number of years as a successful Dance Trainer at a School, you decide to quit the job and open your own Dance Academy. You decide that your neighbourhood would be the perfect place to open a Dance Academy. Even better, your friend Tracey, a qualified Dance Trainer has just moved to Sydney and is willing to work at your Academy. You hurriedly prepare to open the Sydney Dance Academy, by July 1, 2022.

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

1. You contribute $22,000 in cash to start the business.

2. You purchase $8,000 worth of equipment for use during sessions for cash.

3. You purchased an additional $4,000 worth of Dance costumes for cash.

4. You purchase liability insurance at a total cost of $4,800. The policy is for 6 months from July 1, 2022 through to 31 Dec, 2022.

The following transactions took place during July, 2022

Date	Transaction
Jul 8	You collected $3,200 in total from new students as the enrolment and dance session fee for July 2022 in cash.
15	Tracey, the qualified Dance Trainer is paid $2,200 as salary for July 2022.
22	Rent is paid for the month of July 2022 in cash $2,000.
30	You received the bills for electricity $300 and telephone $150 for the month of July. This will be paid on Aug 15, 2022.

The following transactions took place during Aug 2022

Date	Transaction
Aug 8	You collected $3,500 in total from students as Dance lesson fees in cash. Of this amount, $1,500 is for classes that students will attend in Aug and $2,000 is for classes that they will attend in Sept 2022.
15	Tracey, the qualified Dance trainer earns $2,200 for teaching in Aug 2022. Of this amount, $1,800 is paid on Aug 15, 2022, and the remaining $400 will be paid on Sept 15, 2022.
17	You sold dance costumes for the upcoming musical for $1200 in cash. The costumes were purchased for $800.
20	You were running low on cash, so you borrowed $8,000 in cash from your local bank. This loan will have to be repaid after 2 years.
22	Rent is paid for the month of Aug 2022 in cash $2,000.
26	A student who had paid $300 for classes in Aug was relocated and asked for a refund. You agreed to refund the $300.
27	You received the bills for electricity $350 and telephone $180 for the month of Aug. This will be paid on Sept 15, 2022.
29	You withdrew $2,800 of your investment from the business to pay for your personal expenses.

Required:

1. Record the transactions in the general journal of Sydney Dance Academy.

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 Dance Academy for the period ending 31 Aug 2022.

7. Prepare the Balance Sheet for Sydney Dance Academy as at 31 Aug 2022.

8. Evaluate the financial performance of Sydney Dance Academy using at least one profitability ratio.

Note: Use the MS Excel Spreadsheet Template for this Project to complete requirements 1 to 8.