Question: 1 ) review the list of transactions then add 5 additional transactions
ID: 2416253 • Letter: Q
Question
Question: 1 ) review the list of transactions then add 5 additional transactions related to this business and according to the table that is given below
2) Post all of these transactions in ledgers.
Fahed inherited a large sum of money and decided to open up his own business. He decided to open up a mechanic shop for fixing high end sports cars, naming his business Fahed Fixes Fast Cars.
The following transactions took place during the month of August, 2015:
August 1: Fahed invested 500,000 in a new business called Fahed Fixes Fast Cars.
August 2: Fahed transferred some mechanic tools worth 15,000 from his home to the business.
August 4: The business purchased repair equipment valued at 70,000 on account from ‘Tools R Us’
August 5: The business purchased mechanic tools for 25,000 in cash.
August 6: The business wrote check 101 for 6,000 for rent of the mechanic shop.
August 10: The business received it’s first customer and made a minor repair for a customer’s car for 5,000 in cash.
August 11: The business repaired a car for 14,000 on account for customer Kobe Bryant.
August 12: The business wrote check 102 in the amount of 10,000 as partial payment for the repair equipment purchased on August 4th from ‘Tools R Us.’
August 14: The business wrote check 103 in the amount of 4,800 for the insurance bill for the month.
August 15: The business repaired a customers car for 19,200 on account for customer Derek Jeter.
August 20: The business received a check in the amount of 8,500 as partial payment for the repairs previously made for customer Kobe Bryant on August 11th.
August 21: The business paid the employee salaries for $12,000 in cash.
August 22: Fahed withdrew $4,000 in cash for personal use.
August 23: The business repaired a customers car for $7,800 in cash.
August 24: The business received full payment for the repairs made for Derek Jeter on August 15th.
Include an additional 5 transactions of your own below:
August 25:
August 27:
August 28
August 29:
August 31:
Fahed Fixes Fast Cars
Chart of Accounts
101
Cash in Bank
201
A/P - Tool Time
401
Repair Revenue
102
A/R - Kobe Bryant
202
A/P - Tools R Us
501
Rent Expense
103
A/R - Derek Jeter
301
Fahed, Capital
502
Salary Expense
104
A/R - Tom Brady
302
Fahed, Drawings
503
Insurance Expense
105
Mechanic Tools
504
Utilities Expense
106
Repair Equipment
107
Office Supplies
108
Office Equipment
Fahed Fixes Fast Cars
Chart of Accounts
101
Cash in Bank
201
A/P - Tool Time
401
Repair Revenue
102
A/R - Kobe Bryant
202
A/P - Tools R Us
501
Rent Expense
103
A/R - Derek Jeter
301
Fahed, Capital
502
Salary Expense
104
A/R - Tom Brady
302
Fahed, Drawings
503
Insurance Expense
105
Mechanic Tools
504
Utilities Expense
106
Repair Equipment
107
Office Supplies
108
Office Equipment
Explanation / Answer
Solution:
Date Journal Debit Credit Aug-01 Cash in bank 500,000 Fahed, Capital 500,000 Aug-02 Mechanic Tools 15,000 Fahed, Capital 15,000 Aug-04 Equiment 70,000 A/P - Tool R Us 70,000 Aug-05 Mechanic Tools 25,000 Cash in bank 25,000 Aug-06 Rent Expense 6,000 Cash at bank 6,000 Aug-10 Cash at bank 5,000 Repair Revenue 5,000 Aug-11 A/R - Kobe Bryant 14,000 Repair Revenue 14,000 Aug-12 A/P - Tool R Us 10,000 Cash at bank 10,000 Aug-14 Insurance Expense 4,800 Cash at bank 4,800 Aug-15 A/R - Derek Jeter 19,200 Repair Revenue 19,200 Aug-20 Cash at bank 8,500 A/R - Kobe Bryant 8,500 Aug-21 Salaries Expense 12,000 Cash at bank 12,000 Aug-22 Drawings 12,000 Cash at bank 12,000 Aug-23 Cash at bank 7,800 Repair Revenue 7,800 Aug-24 Repair Revenue 19,200 0 A/R - Derek Jeter 19,200Related Questions
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