Required:

1) Enter the opening balances from the August 2021 balance sheet into the general ledger accounts. Prepare journal entries for the month of September and post them to the appropriate general ledger accounts.

2) Create the trial balance in the worksheet, and then complete the remaining section of the worksheet. Prepare the journal entries for the adjustments and post them to the appropriate general ledger accounts.

3) Create the income statement, statement of owners equity and the classified balance sheet. 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 account. 4) Create the post-closing trial balance.  

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shown below. Assets Cash Accounts Receivable Prepaid Insurance Equipment Accumulated Depreciation Total Assets ASSETS Cash Account Description 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 Sept 1 Sept 1 Sept 1 Sept 2 Sept 5 Sept 11 Sept 15 Sept 18 Sept 20 Sept 23 Sept 26 Sept 28 Sept 29 Sept 30 Sept 30 BW Travel and Tours Balance Sheet As at August 31, 2021 Liabilities $14,230 Accounts Payable $8,520 Unearned Revenue $0 Bank Loan Sept 30 Sept 30 $65,800 -$9,600 Total Liabilities Sept 30 Sept 30 Sept 30 Woods Capital $78,950 Total Liabilities & Owners' Equity Account # 101 105 110 120 125 200 205 210 215 220 300 310 315 Account Description For the month of September 2021, BW Travel and Tours had the following transactions: Bryson invested $15,000 cash and equipment valued at $12,500 into the business. Prepaid $4,500 for insurance for one year. REVENUE Service Revenue EXPENSES Advertising Expense Depreciation Expense Insurance Expense Interest Expense Salaries Expense Telephone Expense Travel Expense Rent Expense $11,700 $16,200 $25,000 $52,900 $26,050 $78,950 plus accrued interest at 10% Paid $1,950 cash for September's rent. Provided travel package to group of travellers; they paid $22,500 now and will pay $4,500 later. Recorded travel expenses for $9,100 to be paid next month. Purchased equipment with $13,000 cash. Paid $5,850 cash to reduce the balance of accounts payable. Received $4,260 cash from customers for the travel services provided last month. Received a telephone bill for $880 which will be paid next month. Paid $4,150 cash for employee's salaries. Received $26,700 cash in advance from travellers for travel services to be provided next month. Paid $2,530 advertising expense for the promotion of the travel and tours in the month of September. The owner withdrew $6,550 cash for personal use. Paid $833 cash for the bank loan which included $625 principle and $208 interest. Received a loan from the bank for $20,000 Note: This amount is due in 2 $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. Monthly depreciation on the equipment was $1,270. Accrued salary expense of $2,075 for an employee. The bank loan is payable over 6 years and $625 monthly payment. moon Account # At the end of September, the following adjustment had to be journalized to properly report the balances of the company's accounts: 400 500 510 515 520 545 550 555 560 shown below. Assets Cash Accounts Receivable Prepaid Insurance Equipment Accumulated Depreciation Total Assets ASSETS Cash Account Description 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 Sept 1 Sept 1 Sept 1 Sept 2 Sept 5 Sept 11 Sept 15 Sept 18 Sept 20 Sept 23 Sept 26 Sept 28 Sept 29 Sept 30 Sept 30 BW Travel and Tours Balance Sheet As at August 31, 2021 Liabilities $14,230 Accounts Payable $8,520 Unearned Revenue $0 Bank Loan Sept 30 Sept 30 $65,800 -$9,600 Total Liabilities Sept 30 Sept 30 Sept 30 Woods Capital $78,950 Total Liabilities & Owners' Equity Account # 101 105 110 120 125 200 205 210 215 220 300 310 315 Account Description For the month of September 2021, BW Travel and Tours had the following transactions: Bryson invested $15,000 cash and equipment valued at $12,500 into the business. Prepaid $4,500 for insurance for one year. REVENUE Service Revenue EXPENSES Advertising Expense Depreciation Expense Insurance Expense Interest Expense Salaries Expense Telephone Expense Travel Expense Rent Expense $11,700 $16,200 $25,000 $52,900 $26,050 $78,950 plus accrued interest at 10% Paid $1,950 cash for September's rent. Provided travel package to group of travellers; they paid $22,500 now and will pay $4,500 later. Recorded travel expenses for $9,100 to be paid next month. Purchased equipment with $13,000 cash. Paid $5,850 cash to reduce the balance of accounts payable. Received $4,260 cash from customers for the travel services provided last month. Received a telephone bill for $880 which will be paid next month. Paid $4,150 cash for employee's salaries. Received $26,700 cash in advance from travellers for travel services to be provided next month. Paid $2,530 advertising expense for the promotion of the travel and tours in the month of September. The owner withdrew $6,550 cash for personal use. Paid $833 cash for the bank loan which included $625 principle and $208 interest. Received a loan from the bank for $20,000 Note: This amount is due in 2 $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. Monthly depreciation on the equipment was $1,270. Accrued salary expense of $2,075 for an employee. The bank loan is payable over 6 years and $625 monthly payment. moon Account # At the end of September, the following adjustment had to be journalized to properly report the balances of the company's accounts: 400 500 510 515 520 545 550 555 560

Answer rating: 100% (QA)

Answer Lets start by preparing Journal Entries for the Month of September 1 Journal Entries for the Month of September Date Account Debit Credit Sept 1 Cash 101 15000 Equipment 120 12500 Woods Capital ... View the full answer