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Ruddy Lewis operates a bike repair shop operating under the name R.L. Bike Repai

ID: 2328756 • Letter: R

Question

Ruddy Lewis operates a bike repair shop operating under the name R.L. Bike Repairs. The balances of his accounts on April 1 of the current year were as follows:

Cash                                        $10,800

Supplies                                        1,200

Machines                                     6,400

Accounts Payable                         6,000

Capital                                        12,400

The following transactions were incurred for the month of April:

Paid wages of $700 for 1st pay period in the month

Paid creditors on account $4,000

Purchased a new machine on account for $3,100

Received $7,200 cash from customers for bike repairs service

Paid courier service expense $280

Paid $850 cash for wages for the 2nd pay period in the month.

Ruddy Lewis withdrew $500 cash for personal use (“drawings”)

Paid creditors on account $1,200

Inventory of supplies at end of the month (April 30) was $550

Received $3,500 cash from customers for bike repairs service

You are required to record the transactions in the form provided, showing the balances on each account at the end of each transaction cycle. Transaction 1 has been completed for you.

Assets        = Liabilities + Owners Equity Balance April 1 + Cash + Supplies Machines Accounts Payable Ruddy Lewis, Capital Balance (April 1)                       $10,800          $1,200 $6,400 $6,000 $12,400 Transaction Numbers 1 -700 0 0 0 -700 Balance $10,100 $1,200 $6,400 $6,000 $11,700 2 Balance $ $ $ $ $ 3 Balance $ $ $ $ $ 4 Balance $ $ $ $ $ 5 Balance $ $ $ $ $ 6 Balance $ $ $ $ $ 7 Balance $ $ $ $ $ 8 Balance $ $ $ $ $ 9 Balance $ $ $ $ $ 10 Balance, April 30 $ $ $ $ $

Explanation / Answer

Balance Cash Supplies Machines AP Capital April 1 10800 1200 6400 6000 12400 1. -700 Balance 10100 1200 6400 6000 12400 2. -4000 -4000 Balance 6100 1200 6400 2000 12400 3. 3100 3100 Balance 6100 1200 9500 5100 12400 4. 7200 Balance 13300 1200 9500 5100 12400 5. -280 Balance 13020 1200 9500 5100 12400 6. -850 Balance 12170 1200 9500 5100 12400 7. -500 -500 Balance 11670 1200 9500 5100 11900 8. -1200 -1200 Balance 10470 1200 9500 3900 11900 9. Balance 10470 1200 9500 3900 11900 10. 3500 Balance 13970 1200 9500 3900 11900