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

** You are requested to journalize and post adjusting entries (step 5] for your chosen business during the month of August 2020!

Date Cash Assets Accounts Receivable Supplies Equipment Liabilities + Owners equities Notes Accounts Share Retained Earnings Payable Payable Capital +Rev -Exp -Divid +100000 +50,000 +100000 1 2 +50,000 3 +10,000 +5000 4 5 +20,000 6 +10,000 -5000 +20,000 +15,000 *10,000 -20,000 +10,000 -10,000 +15,000 +10,000 7 -20,000 8 9 -1500 -1500 10 11 -2000 -2000 Total