Introduction To Accounting Transactions Campus Cycle Shop (Other (Not Listed) Sample)

Part A (30 points)Record the following transactions in the basic accounting equation:a. Brian invests $10,000 cash to begin an accounting service.b. The company buys office furniture for cash, $600.c. The company buys additional office furniture on account, $300.d. The company makes a payment on the office furniture, $200.Brian's Accounting ServiceASSETS = LIABILITIES + OWNER'S EQUITYCash + Office Furniture = Accounts Payable + Brian's Capital
Solution
Assets=Liability+Capital
Cash + Office furniture=Account payable + Brian's Capital
$10,000=$10,000
$600$600=$600
$300=$300
$200=$200
Part B (40 points)The following is a list of accounts and their balances for Benson Company for the month ended June 30, 20xx. Prepare a trial balance in good form.Cash $1,370 Benson, Withdrawals $ 500Accounts Payable 770 Accounts Receivable 1,600Office Equipment 900 Service Fees 2,730Benson, Capital 1,500 Salaries Expense 630
Solution
Benson Company
Trial Balance
As at June 20, 20(customers date)
Particulars=Debit+Credit
Cash=$1,370
Account Payable=$770
Office Equipment=$900
Benson, Capital=$1,500
Benson, Withdrawals=$500
Account Receivable=$1,600
Service Fee=$2,750
Salaries Expense=$630
$5,000$5,000
Part C (30 points)The following transactions occurred during June for Campus Cycle Shop. Record the transactions below in the T accounts. Place the letter of the transaction next to the entry. Foot and calculate the ending balances of the T accounts where appropriate.a. Tyler invested $6,500 in the bike service from his personal savings account.b. Bought office equipment for cash, $900.c. Performed bike service for a customer on account, $1,000.d. Company cell phone bill received, but not paid, $80.e. Collected $500 from customer in transaction c.f. Tyler withdrew $300 for personal use.
Solution
a.Tyler invested $6,500 in the bike service from his personal savings account
Cash 111
Capital$6,500Office Equipment$900
Account payable$500Tyler's withdrawal$300
Account Receivable 112
Service Fee$1,000Cash$500
C/D$500
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