Fonzie's Motorcycle Shop

Fonzie started a motorcycle shop in December, $2022,$ doing repair work. Starting January $1,2023,$ he is confining himself to the sale of motorcycle parts and accessories, only doing repair work occasionally.

Sales tax of $5\%$ will apply to all merchandise sales. Accessories and motorcycle parts are considered to be the same thing, merchandise.

Beginning balances in the general ledger reflect his December, $2022,$ transactions. The beginning balance in aqsumulated depreciation account is one month of depreciation on items purchased in $2022.$ He borrowed $$20,000$ in December, $2022,$ from Mr$.$ Cunningham and signed a note promising to pay interest at $6\%$ per annum, payable monthly. The entire note balance will be due in $5$ years.

Accessories or parts are considered merchandise for resale. Supplies are items which are consumed by the business, not resold.

You are to complete the journals, post to the general ledger, complete the worksheet and prepare financial statements. You do not need to journalize the adjusting entries or to make the closing entries.

$\backslash$table$[[$Date$,$Description of activity,Amount$],[3,$Purchased motorcycle accessories on credit from

Acme Motorcycle,$1,200\mathrm{.}00.$ Jan $4$ sold on credit motorcycle accessories $-$john jones $300\mathrm{.}00.$ Jan $4$ bought a display case for cash from used furniture $1,000\mathrm{.}00.$ Jan $5$ paid ABC Rental for rent for the month of january $300\mathrm{.}00.$ Jan $5$ paid state farm insurance for $6$ months policy for period of jan$-$june $1,200\mathrm{.}00.$ Jan $6$ sold accessories on credit $-$ sam smith $700\mathrm{.}00.$ Jan $6$ collected balance of outstanding account from red robin motorcycle club $1,000\mathrm{.}00.$ Jan $7$ sold accessories for cash $250\mathrm{.}00.$ Jan $9$ bought advertising from anytowN register on credit $100\mathrm{.}00.$ Jan $9$ paid outstanding balance on supplies to motorcycle haven $1,300\mathrm{.}00.$ Jan $10$ sold on credit motorcyle accesories $-$ charlie chan $400\mathrm{.}00.$ Jan $10$ collected on account from john jones $315\mathrm{.}00.$ Jan $12$ sold accessories for cash $500\mathrm{.}00.$ Jan $13$ paid mr cunningham interest on note, one month's worth at $6\%?$ Jan $13$ did repair work on credit for charlie chan $250\mathrm{.}00.$ Jan $14$ paid urility bill to municipal electric $75\mathrm{.}00.$ Jan $14$ paid himself a withdrawal $2,000\mathrm{.}00.$jan $16$ did repair work for cash $300\mathrm{.}00.$ Jan $16$ sold accessories on credit $-$ john jones $175\mathrm{.}00.$ Jan $17$ paid one half of the amount owed to acme motorcycle $?$

Jan $17$ cash sales of accessories $300\mathrm{.}00.$ Jan $18$ sam smith returned items he had previously purchased $100\mathrm{.}00.$ Jan $20$ cash sales of accessories $250\mathrm{.}00.$ Jan $21$ purchased motorcycle accessories on credit from acme motorcyle $400\mathrm{.}00.$ Jan $21$ bought advertising from anytown register on credit $100\mathrm{.}00.$ Jan $23$ paid anytown register for jan $9$ purchase $100\mathrm{.}00.$ Jan $24$ cash sales of accessories $100\mathrm{.}00.$ Jan $24$ sold accessories on credit $-$ charlie chan $250\mathrm{.}00.$ Jan $25$ cash sales for accessories $125\mathrm{.}00.$ Jan $26$ received payment from charlie chan $200\mathrm{.}00.$ Jan $28$ sold accessories to sam smith on credit $300\mathrm{.}00.$ Jan $30$ paid himself a withdrawal $500\mathrm{.}00.$ Jan $30$ purchased supplies from motorcycle haven on credit $500\mathrm{.}00$

Copy Format Painter

Clipboard

Clipboard

Calibri

$11$

B

I

$U_{?}$

$\sqrt[\phantom{2}]{4}$

$\sqrt[\phantom{2}]{4}$

D$15$

D$15$

A

A

B

C

$\backslash$table$[[$D$,$E$,$F$]]$

G

Accounting

$$.\%$

$00$

Alignment

Merge & Center

Font

Number

$f_x$

$f_x$

Sales Journal

Pruchases Journal

Cash Receipts Journal

Cash Payments Journal

General Journal