Why transaction is 2880. Please explain Assume that a relatively new company you and you group members are involved with has presented you with thefollowing transactions for 2021 from the books of the business. This company operates one bank account to reflectall cash and cheque transactions. You are now required to read these transactions carefully then prepare the relevantdocuments and books as outlined in the requirements below.1 AugStarted business with $150, 000 in the bank3 AugBought supplies on credit from Right Way Manufacturers24 Boxes Air Filter96 Bottles fuel injector cleaner48 Boxes Spark Plug36 Boxes Brake Shoe$720.00 per box.$200.00 per bottle$300.00 per box$580.00 per box$400.00 per box8 small motorbike engines7 Large motorbike engines8 Medium motorbike engines24 Boxes Disc Pads$350.00 per engine5 Aug$550.00 per engineProvided services for cash less 10% discount12 small motorbike engines6 large motorbike engines (full service)8 medium size motorbike engines (full service)$350.00 per engine$950.00 per engine$800.00 per engine31 AugSupplies on hand5 Boxes Air Filter6 Bottles fuel injector cleaner12 Boxes Spark Plug13 Boxes Brake Shoe9 Boxes Disc Pads$720.00 per box$200.00 per bottle$300.00 per box$580.00 per box$400.00 per box7 AugPaid Rent by cheque$5,000.0010 AugPaid Wages by cheque$8,000.0010 AugBought Fixtures from CT Limitedpaying by cash$3,500.00To avoid duplication of account names and the use of improper account names, the company has provided the followinglist of accounts used to record its transactions as extracted from its chart of accounts:CapitalCashSuppliesRight Way ManufacturersJ ManufacturersP&S AutoCT LtdService RevenueDiscount AllowedRent ExpenseWages ExpenseSupplies ExpenseFixtures11 AugProvided services on credit to Auto Care.24 small motorbike engines8 large motor bike engines (partial service)12 medium size motorbike engine (partial service)$350.00 per engine$650.00 per engine$550.00 per engine12 AugBought Fixtures on credit from CT Ltd$8,000.00Auto CareLoan NBCDiscount ReceivedElectricity ExpenseDrawings13 AugReceived a loan from NBC cash$25,000.0014 AugProvided services on credit to P&S Auto18 Large motorbike engines (full service)12 medium size motor bike engines24 medium size motorbike engines20 small motorbike engines$950.00 per engine$650.00 per engine$550.00 per engine$350.00 per engine21 AugPaid CT Ltd by cheque$8,000.0022 AugPaid wages cash$8,000.00Requirements:A. Create a name for the owner of the company and give the business a name that reflects the operations of the23 AugPaid Right Way Manufacturer the amount owing to themby cheque, they allowed us a 15% discountorganization.B. Record the transactions stated above in the general journal.P&S Auto paid the amount owing by them inCash less 10 % discount27 Aug27 AugElectricity paid by cash$1,500.0028 AugThe owner took $5000 out of the bank for his personal use.28 AugProvided services for cash12 small motorbike engines6 medium size motorbike engines4 medium size motor bike engines$350.00 per engine$550.00 per engine$800.00 per engine29 AugBought supplies on credit from big J Manufacturers4 Bottles Fuel Injector Cleaner9 Boxes Air Filters8 Boxes Sparks Plugs$200.00 per bottle$720.00 per box$300.00 per boxS PhotoGrid30 AugProvided service for cash General JournalJournal EntryDateParticularsDebit ($)Credit ($)01-AugCash150000To J Christine Capital150000(Being bring Capital into the business)28-AugJ Christine Drawings5000To Cash5000(Being withdraw money from business)28-AugCash10700To Service Revenue10700(Being provided services)29-AugSupplies9680To Accounts Payable - J Manufactures9680(Being purchase of supplies)30-AugCash13850To Service Revenue13850(Being provided services)31-AugSupplies12350To Accounts Payable - J Manufactures12350(Being purchase of supplies)31-AugSupplies Expenses2880To Supplies2880(Being charged to supplies expenses)

Supplies consumed is the amount of supplies or the inventory which has been consumed during the year…

Answered: Why transaction is 2880. Please explain

Why transaction is 2880. Please explain

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q