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Concept explainers
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.
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
Requirements:
- Record the transactions stated above in the general journal.
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