Why transaction is 2880. Please explain
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter5: Cash Control Systems
Section5.2: Bank Reconciliation
Problem 1OYO
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Question
Why transaction is 2880. Please explain
![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
96 Bottles fuel injector cleaner
48 Boxes Spark Plug
36 Boxes Brake Shoe
$720.00 per box.
$200.00 per bottle
$300.00 per box
$580.00 per box
$400.00 per box
8 small motorbike engines
7 Large motorbike engines
8 Medium motorbike engines
24 Boxes Disc Pads
$350.00 per engine
5 Aug
$550.00 per engine
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
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
$720.00 per box
$200.00 per bottle
$300.00 per box
$580.00 per box
$400.00 per box
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
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
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
Auto Care
Loan NBC
Discount Received
Electricity Expense
Drawings
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
22 Aug
Paid wages cash
$8,000.00
Requirements:
A. Create a name for the owner of the company and give the business a name that reflects the operations of the
23 Aug
Paid Right Way Manufacturer the amount owing to them
by cheque, they allowed us a 15% discount
organization.
B. Record the transactions stated above in the general journal.
P&S Auto paid the amount owing by them in
Cash less 10 % discount
27 Aug
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
29 Aug
Bought supplies on credit from big J Manufacturers
4 Bottles Fuel Injector Cleaner
9 Boxes Air Filters
8 Boxes Sparks Plugs
$200.00 per bottle
$720.00 per box
$300.00 per box
S PhotoGrid
30 Aug
Provided service for cash](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fab89f2fd-2d90-4d55-9e01-3ab3450cbdbc%2Fff41aa97-41fd-4ef2-9839-36712d1fc45e%2Fox1z6e_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
96 Bottles fuel injector cleaner
48 Boxes Spark Plug
36 Boxes Brake Shoe
$720.00 per box.
$200.00 per bottle
$300.00 per box
$580.00 per box
$400.00 per box
8 small motorbike engines
7 Large motorbike engines
8 Medium motorbike engines
24 Boxes Disc Pads
$350.00 per engine
5 Aug
$550.00 per engine
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
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
$720.00 per box
$200.00 per bottle
$300.00 per box
$580.00 per box
$400.00 per box
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
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
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
Auto Care
Loan NBC
Discount Received
Electricity Expense
Drawings
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
22 Aug
Paid wages cash
$8,000.00
Requirements:
A. Create a name for the owner of the company and give the business a name that reflects the operations of the
23 Aug
Paid Right Way Manufacturer the amount owing to them
by cheque, they allowed us a 15% discount
organization.
B. Record the transactions stated above in the general journal.
P&S Auto paid the amount owing by them in
Cash less 10 % discount
27 Aug
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
29 Aug
Bought supplies on credit from big J Manufacturers
4 Bottles Fuel Injector Cleaner
9 Boxes Air Filters
8 Boxes Sparks Plugs
$200.00 per bottle
$720.00 per box
$300.00 per box
S PhotoGrid
30 Aug
Provided service for cash
![General Journal
Journal Entry
Date
Particulars
Debit ($)
Credit ($)
01-Aug
Cash
150000
To J Christine Capital
150000
(Being bring Capital into the business)
28-Aug
J Christine Drawings
5000
To Cash
5000
(Being withdraw money from business)
28-Aug
Cash
10700
To Service Revenue
10700
(Being provided services)
29-Aug
Supplies
9680
To Accounts Payable - J Manufactures
9680
(Being purchase of supplies)
30-Aug
Cash
13850
To Service Revenue
13850
(Being provided services)
31-Aug
Supplies
12350
To Accounts Payable - J Manufactures
12350
(Being purchase of supplies)
31-Aug
Supplies Expenses
2880
To Supplies
2880
(Being charged to supplies expenses)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fab89f2fd-2d90-4d55-9e01-3ab3450cbdbc%2Fff41aa97-41fd-4ef2-9839-36712d1fc45e%2Fa60a2gf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:General Journal
Journal Entry
Date
Particulars
Debit ($)
Credit ($)
01-Aug
Cash
150000
To J Christine Capital
150000
(Being bring Capital into the business)
28-Aug
J Christine Drawings
5000
To Cash
5000
(Being withdraw money from business)
28-Aug
Cash
10700
To Service Revenue
10700
(Being provided services)
29-Aug
Supplies
9680
To Accounts Payable - J Manufactures
9680
(Being purchase of supplies)
30-Aug
Cash
13850
To Service Revenue
13850
(Being provided services)
31-Aug
Supplies
12350
To Accounts Payable - J Manufactures
12350
(Being purchase of supplies)
31-Aug
Supplies Expenses
2880
To Supplies
2880
(Being charged to supplies expenses)
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