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 box   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 paying by cash   11 Aug Provided services on credit to Auto Care. 24 small motorbike engines $350.00 per engine 8 large motor bike engines (partial service) $650.00 per engine 12 medium size motorbike engine (partial service) $550.00 per engine       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 $8,000.00   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   28 Aug The owner took $5000 out of the bank for his personal use.   28 Aug Provided services for cash 12 small motorbike engines $350.00 per engine 6 medium size motorbike engines $550.00 per engine 4 medium size motor bike engines $800.00 per engine   29 Aug Bought supplies on credit from big J Manufacturers 4 Bottles Fuel Injector Cleaner $200.00 per bottle 9 Boxes Air Filters $720.00 per box     8 Boxes Sparks Plugs $300.00 per box   30 Aug Provided service for cash 8 small motorbike engines $350.00 per engine 7 Large motorbike engines $950.00 per engine 8 Medium motorbike engines $550.00 per engine   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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 box

 

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

paying by cash

 

11 Aug Provided services on credit to Auto Care.

24 small motorbike engines $350.00 per engine

8 large motor bike engines (partial service) $650.00 per engine

12 medium size motorbike engine (partial service) $550.00 per engine

 

 

 

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 $8,000.00

 

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

 

28 Aug The owner took $5000 out of the bank for his personal use.

 

28 Aug Provided services for cash

12 small motorbike engines $350.00 per engine

6 medium size motorbike engines $550.00 per engine

4 medium size motor bike engines $800.00 per engine

 

29 Aug Bought supplies on credit from big J Manufacturers

4 Bottles Fuel Injector Cleaner $200.00 per bottle

9 Boxes Air Filters $720.00 per box

 

 

8 Boxes Sparks Plugs $300.00 per box

 

30 Aug Provided service for cash

8 small motorbike engines $350.00 per engine

7 Large motorbike engines $950.00 per engine

8 Medium motorbike engines $550.00 per engine

 

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

 

 

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