Question 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:CapitalCash SuppliesRight Way ManufacturersJ ManufacturersP&S AutoCT LtdService RevenueDiscount AllowedRent ExpenseWages ExpenseSupplies ExpenseFixturesAuto CareLoan NBCDiscount ReceivedElectricity Expense DrawingsRequirements: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 accountExtract 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 6 large motorbike engines (full service)$950.00per engineScenario:8 medium size motorbike engines (full service)$800.00 per engineAssume that a relatively new company you and you group mem-bers are involved with has presented you with the following trans-actions for 2021 from the books of the business. This companyoperates one bank account to reflect all cash and chequetransactions. You are now required to read these transactionscarefully then prepare the relevant documents and books as out-lined in the requirements below.7 AugPaid Rent by cheque$5,000.0010 Aug Paid Wages by cheque$8,000.0010 AugBought Fixtures from CT Limitedpaying by cash$3,500.001 AugStarted business with $150, 000 in the bank11 Aug Provided services on credit to Auto Care.24 small motorbike engines$350.00 per en-3 AugBought supplies on credit from Right Way Manufacturers24 Boxes Air Filtergine$720.00 per box$200.008 large motor bike engines (partial service)$650.0096 Bottles fuel injector cleanerperper engine12 medium size motorbike engine (partial service)$550.00 per enginebottle48 Boxes Spark Plug36 Boxes Brake Shoe24 Boxes Disc Pads$300.00 per box$580.00 per box$400.00 per box12 Aug Bought Fixtures on credit from CT Ltd$8,000.005 Aug13 Aug$25,000.00Provided services for cash less 10% discountReceived a loan from NBC cash12 small motorbike engines$350.00 per en-gine14 Aug Provided services on credit to P&S Auto 18 Large motorbike engines (full service)$950.00per6 medium size motorbike engines$550.00engineper engine12 medium size motor bike engines$650.00per4 medium size motor bike engines$800.00perengineengine24 medium size motorbike engines$550.00perBought supplies on credit from big J Manufacturers4 Bottles Fuel Injector Cleanerengine29 Aug20 small motorbike engines$350.00 per en-$200.00perginebottle9 Boxes Air Filters8 Boxes Sparks Plugs$720.00 per box$300.00 per box21 Aug Paid CT Ltd by cheque$8,000.0022 Aug Paid wages cash$8,000.0030 Aug Provided service for cash8 small motorbike engines$350.00per23 Aug Paid Right Way Manufacturer the amount owing to themby cheque, they allowed us a 15% discountengine7 Large motorbike engines$950.00perengine27 Aug P&S Auto paid the amount owing by them in8 Medium motorbike engines$550.00 per en-Cash less 10 % discountgine$1,500.0031 Aug Supplies on hand5 Boxes Air Filter6 Bottles fuel injector cleaner12 Boxes Spark Plug13 Boxes Brake Shoe9 Boxes Disc Pads27 Aug Electricity paid by cash$720.00 per box$200.00 per bottle$300.00 per box$580.00 per box$400.00 per box28 Aug The owner took $5000 out of the bank for his personal use.28 Aug Provided services for cash12 small motorbike engines$350.00 per en-gine

Journal Entry The purpose of preparing the journal entry to enter the required transaction into…

Answered: Question To avoid duplication of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question 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 Right Way Manufacturers J Manufacturers P&S Auto CT Ltd 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

6 large motorbike engines (full service)
$950.00
per engine
Scenario:
8 medium size motorbike engines (full service)
$800.00 per engine
Assume that a relatively new company you and you group mem-
bers are involved with has presented you with the following trans-
actions 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 out-
lined in the requirements below.
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
paying by cash
$3,500.00
1 Aug
Started business with $150, 000 in the bank
11 Aug Provided services on credit to Auto Care.
24 small motorbike engines
$350.00 per en-
3 Aug
Bought supplies on credit from Right Way Manufacturers
24 Boxes Air Filter
gine
$720.00 per box
$200.00
8 large motor bike engines (partial service)
$650.00
96 Bottles fuel injector cleaner
per
per engine
12 medium size motorbike engine (partial service)
$550.00 per engine
bottle
48 Boxes Spark Plug
36 Boxes Brake Shoe
24 Boxes Disc Pads
$300.00 per box
$580.00 per box
$400.00 per box
12 Aug Bought Fixtures on credit from CT Ltd
$8,000.00
5 Aug
13 Aug
$25,000.00
Provided services for cash less 10% discount
Received a loan from NBC cash
12 small motorbike engines
$350.00 per en-
gine
14 Aug Provided services on credit to P&S Auto

18 Large motorbike engines (full service)
$950.00
per
6 medium size motorbike engines
$550.00
engine
per engine
12 medium size motor bike engines
$650.00
per
4 medium size motor bike engines
$800.00
per
engine
engine
24 medium size motorbike engines
$550.00
per
Bought supplies on credit from big J Manufacturers
4 Bottles Fuel Injector Cleaner
engine
29 Aug
20 small motorbike engines
$350.00 per en-
$200.00
per
gine
bottle
9 Boxes Air Filters
8 Boxes Sparks Plugs
$720.00 per box
$300.00 per box
21 Aug Paid CT Ltd by cheque
$8,000.00
22 Aug Paid wages cash
$8,000.00
30 Aug Provided service for cash
8 small motorbike engines
$350.00
per
23 Aug Paid Right Way Manufacturer the amount owing to them
by cheque, they allowed us a 15% discount
engine
7 Large motorbike engines
$950.00
per
engine
27 Aug P&S Auto paid the amount owing by them in
8 Medium motorbike engines
$550.00 per en-
Cash less 10 % discount
gine
$1,500.00
31 Aug Supplies on hand
5 Boxes Air Filter
6 Bottles fuel injector cleaner
12 Boxes Spark Plug
13 Boxes Brake Shoe
9 Boxes Disc Pads
27 Aug Electricity paid by cash
$720.00 per box
$200.00 per bottle
$300.00 per box
$580.00 per box
$400.00 per box
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 en-
gine

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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