Assume that a relatively new company you and you group members are involved with has presented you with the following transactions for 2021 from the books of the business. This company operates one bank account to reflect all cash and cheque transactions. You are now required to read these transactions carefully then prepare the relevant documents and books as outlined in the requirements below. 1 Aug Started business with $150, 000 in the bank 3 Aug Bought supplies on credit from Right Way Manufacturers 24 Boxes Air Filter $720.00 per box 96 Bottles fuel injector cleaner $200.00 per bottle 48 Boxes Spark Plug $300.00 per box 36 Boxes Brake Shoe $580.00 per box 24 Boxes Disc Pads $400.oo per bo 5 Aug Provided services for cash less 10% discount 12 small motorbike engines $350.00 per engine 6 large motorbike engines (full service) $950.00 per engine 8 medium size motorbike engines (full service) $800.00 per engine 7 Aug Paid Rent by cheque $5,000.00 10 Aug Paid Wages by cheque $8,000.00 10 Aug Bought Fixtures from CT Limited $3,500.00 12 Aug Bought Fixtures on credit from CT Ltd $8,000.00 13 Aug Received a loan from NBC cash $25,000.00 14 Aug Provided services on credit to P&S Auto 18 Large motorbike engines (full service) $950.00 per engine 12 medium size motor bike engines $650.00 per engine 24 medium size motorbike engines $550.00 per engine 20 small motorbike engines $350.00 per engine 21 Aug Paid CT Ltd by cheque $8,000.0 22 Aug Paid wages cash $8,000.00 23 Aug Paid Right Way Manufacturer the amount owing to them by cheque, they allowed us a 15% discount 27 Aug P&S Auto paid the amount owing by them in Cash less 10 % discount 27 Aug Electricity paid by cash $1,500.00 31 Aug Supplies on hand 5 Boxes Air Filter $720.00 per box 6 Bottles fuel injector cleaner $200.00 per bottle 12 Boxes Spark Plug $300.00 per box 13 Boxes Brake Shoe $580.00 per box 9 Boxes Disc Pads $400.oo per box To avoid duplication of account names and the use of improper account names, the company has provided the following list of accounts used to record its transactions as extracted from its chart of accounts: Capital Cash Supplies J Manufacturers Service Revenue Discount Allowed Rent Expense Wages Expense Supplies Expense Fixtures Auto Care Loan NBC Discount Received Electricity Expense Drawings Requirements: Create a name for the owner of the company and give the business a name that reflects the operations of the organization. Record the transactions stated above in the general journal. Post the transactions to the general ledger and balance off each account Extract a trial balance on August 31st. Prepare an Income Statement for the month ended August 31st, the owner’s equity statement and a Balance Sheet as at that date
Assume that a relatively new company you and you group members are involved with has presented you with the following transactions for 2021 from the books of the business. This company operates one bank account to reflect all cash and cheque transactions. You are now required to read these transactions carefully then prepare the relevant documents and books as outlined in the requirements below.
1 Aug Started business with $150, 000 in the bank
3 Aug Bought supplies on credit from Right Way Manufacturers
24 Boxes Air Filter $720.00 per box
96 Bottles fuel injector cleaner $200.00 per bottle
48 Boxes Spark Plug $300.00 per box
36 Boxes Brake Shoe $580.00 per box
24 Boxes Disc Pads $400.oo per bo
5 Aug Provided services for cash less 10% discount
12 small motorbike engines $350.00 per engine
6 large motorbike engines (full service) $950.00 per engine
8 medium size motorbike engines (full service) $800.00 per engine
7 Aug Paid Rent by cheque $5,000.00
10 Aug Paid Wages by cheque $8,000.00
10 Aug Bought Fixtures from CT Limited $3,500.00
12 Aug Bought Fixtures on credit from CT Ltd $8,000.00
13 Aug Received a loan from NBC cash $25,000.00
14 Aug Provided services on credit to P&S Auto
18 Large motorbike engines (full service) $950.00 per engine
12 medium size motor bike engines $650.00 per engine
24 medium size motorbike engines $550.00 per engine
20 small motorbike engines $350.00 per engine
21 Aug Paid CT Ltd by cheque $8,000.0
22 Aug Paid wages cash $8,000.00
23 Aug Paid Right Way Manufacturer the amount owing to them
by cheque, they allowed us a 15% discount
27 Aug P&S Auto paid the amount owing by them in
Cash less 10 % discount
27 Aug Electricity paid by cash $1,500.00
31 Aug Supplies on hand
5 Boxes Air Filter $720.00 per box
6 Bottles fuel injector cleaner $200.00 per bottle
12 Boxes Spark Plug $300.00 per box
13 Boxes Brake Shoe $580.00 per box
9 Boxes Disc Pads $400.oo per box
To avoid duplication of account names and the use of improper account names, the company has provided the following list of accounts used to record its transactions as extracted from its chart of accounts:
Capital
Cash
Supplies
J Manufacturers
Service Revenue
Discount Allowed
Rent Expense
Wages Expense
Supplies Expense
Fixtures
Auto Care
Loan NBC
Discount Received
Electricity Expense
Drawings
Requirements:
Create a name for the owner of the company and give the business a name that reflects the operations of the organization.
Record the transactions stated above in the general journal.
Extract a
Prepare an Income Statement for the month ended August 31st, the owner’s equity statement and a Balance Sheet as at that date
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