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How do I start the accounting cycle with this information given? Assets Cash Accounts Receivable Prepaid Insurance Equipment Accumulated Depreciation Balance Sheet As at August
How do I start the accounting cycle with this information given?
Assets Cash Accounts Receivable Prepaid Insurance Equipment Accumulated Depreciation Balance Sheet As at August 31, 2021 Liabilities $14,230 Accounts Payable $8,520 Unearned Revenue $o Bank Loan $65,800 $9,600 Total Liabilities Woods Capital $78,950 Total Liabilities & Owners' Equity $11,700 $16,200 $25,000 $52,900 $26,050 $78,950 Total Assets 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. Sept 2 Provided travel services to group of travellers; they paid $22,500 now and will pay $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. Paid $2,530 advertising expense for the promotion of the travel and tours in the month Sept 28 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 $20,000Step by Step Solution
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