Principles of Financial Accounting - ACCT 101 Case Study Applying the accounting cycle A&K Automotive On October 2019, Ahmad began a car repair shop, A&K Automotive. The following information about transactions from October to December 2019 Transactions: Oct 1, Ahmad invested $100,000 cash to the business in exchange for capital. 1. Nov 5, Purchased land to be used in operations for $40,000 cash. 2. Nov 10, Purchased $24,000 of equipment paying cash 3. Dec 1, Paid $9,000 for a 9-month insurance policy starting on December 1. 4. Dec 4, Borrowed $60,000 from the bank for business use. Sarah signed a note payable to the bank in the name of the business. 5. Dec 8, Purchased office supplies on account, $6,000. 6. Dec 30, Revenues earned during December included $41,000 cash and $5,400 on account 7. The business received a bill for utilities to be paid in January, $520. 8. Paid employees' salaries $9,600 and building rent $1,600, Record as a compound entry 9. The business received $4,880 for services to be performed next month. 10. A&K Automotive paid dividends of $8,000 cash Additional information: Office Supplies used during the month, S1,200. Depreciation for the year $4,800. One-month insurance has expired. Accrued Interest Expense, $150