BW Travel and Tours

Balance Sheet

As at August $31,2021$

Assets

Liabilities

Cash $$14,230$ Accounts Payable $$11,700$

Accounts Receivable $$8,520$ Unearned Revenue $$16,200$

Prepaid Insurance $$0$ Bank Loan $$25,000$

Equipment $$65,800$

Accumulated Depreciation $-$$$9,600$ Total Liabilities $$52,900$

Woods Capital

$$26,050$

Total Assets $$78,950$ Total Liabilities & Owners' Equity $$78,950$

Account Description Account #

Account Description Account #

ASSETS

REVENUE

Cash $101$

Service Revenue $400$

Accounts Receivable $105$

EXPENSES

Prepaid Insurance $110$

Advertising Expense $500$

Equipment $120$

Depreciation Expense $510$

Accumulated Depreciation $125$

Insurance Expense $515$

LIABILITIES

Interest Expense $520$

Accounts Payable $200$

Salaries Expense $545$

Interest Payable $205$

Telephone Expense $550$

Salary Payable $210$

Travel Expense $555$

Unearned Revenue $215$

Rent Expense $560$

Bank Loan $220$

OWNER'S EQUITY

Woods Capital $300$

Woods Withdrawals $310$

Income Summary $315$

For the month of September $2021,$ BW Travel and Tours had the following transactions:

Sept $1$ Bryson invested $$15,000$ cash and equipment valued at $$12,500$ into the business. $$15,00012500$

Sept $1$ Prepaid $$4,500$ for insurance for one year. $$4,500$

Sept $1$ Paid $$1,950$ cash for September's rent. $$1,950$

Sept $2$ Provided travel package to group of travellers; they paid $$22,500$ now and will pay $$4,500$ later. $$22,5004500$

Sept $5$ Recorded travel expenses for $$9,100$ to be paid next month. $$9,100$

Sept $11$ Purchased equipment with $$13,000$ cash. $$13,000$

Sept $15$ Paid $$5,850$ cash to reduce the balance of accounts payable. $$5,850$

Sept $18$ Received $$4,260$ cash from customers for the travel services provided last month. $$4,260$

Sept $20$ Received a telephone bill for $$880$ which will be paid next month. $$880$

Sept $23$ Paid $$4,150$ cash for employee's salaries. $$4,150$

Sept $26$ Received $$26,700$ cash in advance from travellers for travel services to be provided next month. $$26,700$

Sept $28$ Paid $$2,530$ advertising expense for the promotion of the travel and tours in the month of September. $$2,530$

Sept $29$ The owner withdrew $$6,550$ cash for personal use. $$6,550$

Sept $30$ Paid $$833$ cash for the bank loan which included $$625$ principle and $$208$ interest. $$625$ $$208$

Sept $30$ Received a loan from the bank for $$20,000$ $$20,000$

Note: This amount is due in $2$ years plus accrued interest at $10\%$

At the end of September, the following adjustment had to be journalized to properly report the balances of the company$$s accounts:

Sept $30$ $$31,560$ of the balance of unearned revenue, still remains unearned. $$4,860$

Sept $30$ BW Travel and Tours billed a group of travellers for additonal travel services. This package is amounting to $$8,200.$ They agreed to pay next month.

$8200$

Sept $30$ One month of prepaid insurance worth $$375$ has been used. $$375$

Sept $30$ Monthly depreciation on the equipment was $$1,270.$ $$1,270$

Sept $30$ Accrued salary expense of $$2,075$ for an employee. $$2,075$

The bank loan is payable over $6$ years and $$625$ monthly payment.

$6$ $$45,000625$

Required:

a$)$ Enter the opening balances from the August $2021$ balance sheet into the general ledger accounts.

b$)$ Prepare the journal entries for the month of September and post them to the appropriate general ledger accounts.

c$)$ Create the trial balance in the worksheet, and then complete the remaining section of the worksheet.

d$)$ Prepare the journal entries for the adjustments and post them to the appropriate general ledger accounts.

e$)$ Create the income statement, statement of owner$$s equity and the classified balance sheet.

f$)$ Prepare the journal entries to close the books for the month of September $2021($use the income summary account$),$ and post the journal entries to the appropriate general ledger accounts.

g$)$ Create the post$-$closing trial balance.