After several months of planning, Mary Tratini started a called “Italian Product”. The following business activities occurred during it’s first month (June 1-30, 2020) : 

1) The owner deposited $50,000 cash in the business bank account 

2) Purchase machinery, 9,200$ cash. Should be used for 4 years and could be sold 3,000$ at the end of those years. Declining balance method 

3) Supplies purchases $2,300 (+ tax) on credit 

4) Services rendered to customers $4,150 (+ tax). Received cash payment 

5) Purchased $18,000 of equipment on credit. We believe it’s going to be used for 13 years and will go to scrap (garbage) at the end of those years. Straight-line method 

6) Create Petty cash 800$ 

7) Insurance premium payment, $8,300 cash (cover from June.2020 to May.2021) 

8) Services rendered to customers $8,100 (+ tax). Received cash payment 

9) Rent payment $500 cash 

10) Payment to suppliers $350 (for previous purchased) 

11) 50$ was used for taxi, 15$ parking ticket 

12) Provided Services to customers $1,400 (+tax) on credit. 

13) Record any missing journal entries 

Here are the July 2020 (July.01-31) transactions : 

1) 75$ was used for employee’s gifts, 25$ was used for with paper (printer)

2) Paid tax to federal government 

3) Payment to suppliers $1,800 (for previous purchased) 

4) Rent payment $500 cash 

5) Owner withdrawal 225$ Page 3 / 3 

6) Received $1,175 cash from customers (previous sales) 

7) Refill petty cash 

8) Paid tax to provincial government 

9) Salaries payment $600 cash 

10) Record any missing journal entries and accounting cycle in detail.