DRAFTING OF QUESTION FOR THE MONTH OF AUGUST 2020

MR.A STARTED A BUSINESS OF BIKES ,BUSINESS IS NAMED BIKER STORE HAD THE FOLLOWING TRANSACTION FOR MONTH OF AUGUST

AUGUST 1:- STARTED BUSINESS WITH CASH OF $100000.

AUGUST 5:- PURCHASED BIKES(SUPPLIES) WORTH $50000 ON ACCOUNT FROM XYZ COMPANY.

AUGUST 7:- SOLD BIKE(SALES) FOR $10000 for CASH.

AUGUST 12:- PURCHASED FURNITURE FOR STORE WORTH $5000 ON CASH.

AUGUST 15:-TOOK A LOAN FROM an opposite business company FOR $20000.

AUGUST 20:-SOLD BIKE(SALE) FOR $15000 ON ACCOUNT.

AUGUST 25:-SOLD BIKE(SALE) FOR $10000 FOR CASH

AUGUST 26:-PAID $20000 TO XYZ COMPANY.

AUGUST 28:-RECEIVED A CASH OF $10000 FROM ACCOUNT RECEIAVBLE .

AUGUST 30:-PAID SALARIES TO WORKER $1500.

AUGUST 31:- Paid 2000$ for dividends

Step 4 Accounting Cycle - Prepare Trial Balance Credit Trial Balance For the Month of august 2021 Account Titles Debit Cash $ 123,500 Accounts Receivable $ 5,000 Supplies-Bikes $ 50,000 Furniture $ 5,000 Accounts Payable-Xyz Compay Loan Mr.A, Capital Sales Revenue Salaries Expense $ 1,500 $ 30,000 $ 20,000 $100,000 $ 35,000 Totals $ 185,000 $185,000 Note : Do Comment For Any Issues Step 5 # Based on the work in step 4 of the accounting cycle , You are requested to journalize and post adjusting entries (step 5] for your chosen business during the month of August 2020