Bounce House Party Supply Ltd. rents bouncy castles and inflatable slides for parties, school fairs, and company picnics. The company also sells party supplies such as balloons, streamers, and piatas. The company started business in September and had the following transactions in its first month: Date Sept. 1 1 Bounce House Party Supply Ltd. issued 41,600 common shares for $270,400 cash. The company took out a $166,400 bank loan with an interest rate of 696. The loan terms require that Bounce repay $3,100 in principal on the last day of each month plus interest. Bounce purchased 10 inflatable slides and bouncy castles at a cost of $145,600. The company paid $104,000 at the time of purchase, and the balance is due in 30 days, Bounce purchased balloons and other party supplies costing 56.900 on account. A major local company paid Bounce a $2.600 deposit to reserve all of Bounce's inflatables for a grand opening function that is scheduled for the second week in October (a) Bounce recorded its party supply sales of the first two weeks of the month. Total sales (half in cash and half on account amounted to $8.900 and (b) the inventory related to these sales was determined to have a cost of $5,900. Bounce paid the suppliers $1.800 for goods previously purchased on account Collections from customers on account totalled $3.500 Bounce made the loan payment required under the terms of the borrowing agreement. 19 23 30 Bounce House Party Supply Ltd. rents bouncy castles and inflatable slides for parties, school fairs, and company picnics. The company also sells party supplies such as balloons, streamers, and piatas. The company started business in September and had the following transactions in its first month: Date Sept. 1 1 Bounce House Party Supply Ltd. issued 41,600 common shares for $270,400 cash. The company took out a $166,400 bank loan with an interest rate of 696. The loan terms require that Bounce repay $3,100 in principal on the last day of each month plus interest. Bounce purchased 10 inflatable slides and bouncy castles at a cost of $145,600. The company paid $104,000 at the time of purchase, and the balance is due in 30 days, Bounce purchased balloons and other party supplies costing 56.900 on account. A major local company paid Bounce a $2.600 deposit to reserve all of Bounce's inflatables for a grand opening function that is scheduled for the second week in October (a) Bounce recorded its party supply sales of the first two weeks of the month. Total sales (half in cash and half on account amounted to $8.900 and (b) the inventory related to these sales was determined to have a cost of $5,900. Bounce paid the suppliers $1.800 for goods previously purchased on account Collections from customers on account totalled $3.500 Bounce made the loan payment required under the terms of the borrowing agreement. 19 23 30
