Case Accounting Cycle BW Travel and Tours is a travel agency that offers international and local travel packages. The company is owned and operated by Bryson Woods. The closing balances at the end of August 2021 and the chart of accounts are shown below. 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 # Account # 400 101 105 110 120 125 Account Description ASSETS Cash Accounts Receivable Prepaid Insurance Equipment Accumulated Depreciation LIABILITIES Accounts Payable Interest Payable Salary Payable Unearned Revenue Bank Loan OWNER'S EQUITY Woods Capital Woods Withdrawals Income Summary Account Description REVENUE Service Revenue EXPENSES Advertising Expense Depreciation Expense Insurance Expense Interest Expense Salaries Expense Telephone Expense Travel Expense Rent Expense 500 510 515 520 545 550 555 560 200 205 210 215 220 300 310 315 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. Sept 1 Prepaid $4,500 for insurance for one year. Sept 1 Paid $1,950 cash for September's rent. Provided travel services to group of travellers; they paid $22,500 now and will pay Sept 2 $4,500 later. Sept 5 Recorded travel expenses for $9,100 to be paid next month. Sept 11 Purchased equipment with $13,000 cash. Sept 15 Paid $5,850 cash to reduce the balance of accounts payable. Sept 18 Received $4,260 cash from customers for the travel services provided last month. Sept 20 Received a telephone bill for $880 which will be paid next month. Sept 23 Paid $4,150 cash for employee's salaries. Received $26,700 cash in advance from travellers for travel services to be provided next Sept 26 month. Sept 28 Paid $2,530 advertising expense for the promotion of the travel and tours in the month of September Sept 29 The owner withdrew $6,550 cash for personal use. Sept 30 Paid $833 cash for the bank loan which included $625 principle and $208 interest. Sept 30 Received a loan from the bank for $20,000 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. 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. One month of prepaid insurance worth $375 has been used. Sept 30 Monthly depreciation on the equipment was $1,270. Sept 30 Accrued salary expense of $2,075 for an employee. Sept 30 Sept 30 The bank loan is payable over 6 years and $625 monthly payment. 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) Create the income statement, statement of owner's equity and the classified balance sheet. e) Prepare the journal entries for the adjustments and post them to the appropriate general ledger accounts. 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
