Answered: ll cash and

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

Page 3

Requirements:

a) Post the transactions to the general ledger and balance off each account

b) Extract a trial balance on August 31st.

c) Prepare an Income statement for the month ending August 31st, the owner's equity statement and a balance sheet as at that date

Transcribed Image Text:Scenario: 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 $200.00 per bottle $300.00 per box $580.00 per box $400.00 per box 96 Bottles fuel injector cleaner 48 Boxes Spark Plug 36 Boxes Brake Shoe 24 Boxes Disc Pads 5 Aug Provided services for cash less 10% discount 12 small motorbike engines 6 large motorbike engines (full service) 8 medium size motorbike engines (full service) $350.00 per engine $950.00 per engine $800.00 per engine 7 Aug Paid Rent by cheque $5,000.00 10 Aug Paid Wages by cheque $8,000.00 Bought Fixtures from CT Limited paying by cash 10 Aug $3,500.00 11 Aug Provided services on credit to Auto Care. 24 small motorbike engines 8 large motor bike engines (partial service) 12 medium size motorbike engine (partial service) $350.00 per engine $650.00 per engine $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) 12 medium size motor bike engines 24 medium size motorbike engines 20 small motorbike engines $950.00 per engine $650.00 per engine $550.00 per engine $350.00 per engine 21 Aug Paid CT Ltd by cheque $8,000.00

Transcribed Image Text: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 6 medium size motorbike engines 4 medium size motor bike engines $350.00 per engine $550.00 per engine $800.00 per engine Bought supplies on credit from big J Manufacturers 4 Bottles Fuel Injector Cleaner 9 Boxes Air Filters 8 Boxes Sparks Plugs 29 Aug $200.00 per bottle $720.00 per box $300.00 per box 30 Aug Provided service for cash 8 small motorbike engines 7 Large motorbike engines 8 Medium motorbike engines $350.00 per engine $950.00 per engine $550.00 per engine Supplies on hand 5 Boxes Air Filter 31 Aug 6 Bottles fuel injector cleaner 12 Boxes Spark Plug 13 Boxes Brake Shoe 9 Boxes Disc Pads $720.00 per box $200.00 per bottle $300.00 per box $580.00 per box $400.00 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: Сapital Cash Supplies Right Way Manufacturers J Manufacturers P&S Auto CT Ltd Service Revenue Discount Allowed

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
6 medium size motorbike engines
4 medium size motor bike engines
$350.00 per engine
$550.00 per engine
$800.00 per engine
Bought supplies on credit from big J Manufacturers
4 Bottles Fuel Injector Cleaner
9 Boxes Air Filters
8 Boxes Sparks Plugs
29 Aug
$200.00 per bottle
$720.00 per box
$300.00 per box
30 Aug
Provided service for cash
8 small motorbike engines
7 Large motorbike engines
8 Medium motorbike engines
$350.00 per engine
$950.00 per engine
$550.00 per engine
Supplies on hand
5 Boxes Air Filter
31 Aug
6 Bottles fuel injector cleaner
12 Boxes Spark Plug
13 Boxes Brake Shoe
9 Boxes Disc Pads
$720.00 per box
$200.00 per bottle
$300.00 per box
$580.00 per box
$400.00 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:
Сapital
Cash
Supplies
Right Way Manufacturers
J Manufacturers
P&S Auto
CT Ltd
Service Revenue
Discount Allowed

Scenario:
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
$200.00 per bottle
$300.00 per box
$580.00 per box
$400.00 per box
96 Bottles fuel injector cleaner
48 Boxes Spark Plug
36 Boxes Brake Shoe
24 Boxes Disc Pads
5 Aug
Provided services for cash less 10% discount
12 small motorbike engines
6 large motorbike engines (full service)
8 medium size motorbike engines (full service)
$350.00 per engine
$950.00 per engine
$800.00 per engine
7 Aug
Paid Rent by cheque
$5,000.00
10 Aug
Paid Wages by cheque
$8,000.00
Bought Fixtures from CT Limited
paying by cash
10 Aug
$3,500.00
11 Aug
Provided services on credit to Auto Care.
24 small motorbike engines
8 large motor bike engines (partial service)
12 medium size motorbike engine (partial service)
$350.00 per engine
$650.00 per engine
$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)
12 medium size motor bike engines
24 medium size motorbike engines
20 small motorbike engines
$950.00 per engine
$650.00 per engine
$550.00 per engine
$350.00 per engine
21 Aug
Paid CT Ltd by cheque
$8,000.00

Expert Solution

Step by step

Solved in 4 steps with 7 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions