In a journal entry, debits are always indented.

a. True b. False

Transaction Analysis, Journal Form, T Accounts, and Trial Balance

Sid Patel bid for and won a concession to rent bicycles in the local park during the summer. During the month of April, Patel completed the following transactions for his bicycle rental business:

Apr. 2 Began business by placing $14,400 in a business checking account in the name of the company. 3 Purchased supplies on account for $300. 4 Purchased 10 bicycles for $5,000, paying $2,400 down and agreeing to pay the rest in 30 days. 5 Paid $5,800 in cash for a small shed to store the bicycles and to use for other operations. 8 Paid $800 in cash for shipping and installation costs (considered an addition to the cost of the shed) to place the shed at the park entrance. 9 Hired a part-time assistant to help out on weekends at $14 per hour. 10 Paid a maintenance person $150 to clean the grounds. 13 Received $1,940 in cash for rentals. 17 Paid $300 for the supplies purchased on April 3. 18 Paid a $110 repair bill on bicycles. 23 Billed a company $220 for bicycle rentals for an employee outing. 25 Paid the $200 fee for April to the Park District for the right to operate the bicycle concession. 27 Received $1,920 in cash for rentals. 29 Paid the assistant $480. 30 Made a cash withdrawal of $1,000.

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1. Prepare journal entries to record these transactions. If no entry is required, select "No entry" and leave the amount boxes blank. For a compound transaction, if an amount box does not require an entry, leave it blank.

April 2

April 3

April 4

April 5

April 8

April 9

April 10

April 13

April 17

April 18

April 23

April 25

April 27

April 29

April 30

2. Post all the journal entries to the following T accounts (in chronological order): Cash; Accounts Receivable; Supplies; Shed; Bicycles; Accounts Payable; S. Patel, Capital; S. Patel, Withdrawals; Rental Revenue; Wages Expense; Maintenance Expense; Repair Expense; and Concession Fee Expense.

Cash Select April 2 April 3 April 4 April 5 April 8 April 10 April 13 April 17 April 18 April 23 April 25 April 27 April 29 April 30 Correct 1 of Item 2 Select April 2 April 3 April 4 April 5 April 8 April 10 April 13 April 17 April 18 April 23 April 25 April 27 April 29 April 30 Correct 3 of Item 2 Select April 2 April 3 April 4 April 5 April 8 April 10 April 13 April 17 April 18 April 23 April 25 April 27 April 29 April 30 Correct 5 of Item 2 Select April 2 April 3 April 4 April 5 April 8 April 10 April 13 April 17 April 18 April 23 April 25 April 27 April 29 April 30 Correct 7 of Item 2 Select April 2 April 3 April 4 April 5 April 8 April 10 April 13 April 17 April 18 April 23 April 25 April 27 April 29 April 30 Correct 9 of Item 2 Select April 2 April 3 April 4 April 5 April 8 April 10 April 13 April 17 April 18 April 23 April 25 April 27 April 29 April 30 Correct 11 of Item 2 Select April 2 April 3 April 4 April 5 April 8 April 10 April 13 April 17 April 18 April 23 April 25 April 27 April 29 April 30 Correct 13 of Item 2 Select April 2 April 3 April 4 April 5 April 8 April 10 April 13 April 17 April 18 April 23 April 25 April 27 April 29 April 30 Correct 15 of Item 2 Select April 2 April 3 April 4 April 5 April 8 April 10 April 13 April 17 April 18 April 23 April 25 April 27 April 29 April 30 Correct 17 of Item 2 Select April 2 April 3 April 4 April 5 April 8 April 10 April 13 April 17 April 18 April 23 April 25 April 27 April 29 April 30 Correct 19 of Item 2 Select April 2 April 3 April 4 April 5 April 8 April 10 April 13 April 17 April 18 April 23 April 25 April 27 April 29 April 30 Correct 21 of Item 2 Select April 2 April 3 April 4 April 5 April 8 April 10 April 13 April 17 April 18 April 23 April 25 April 27 April 29 April 30 Correct 23 of Item 2 Bal.

Accounts Receivable Select April 2 April 3 April 4 April 5 April 8 April 10 April 13 April 17 April 18 April 23 April 25 April 27 April 29 April 30 Correct 28 of Item 2

Supplies Select April 2 April 3 April 4 April 5 April 8 April 10 April 13 April 17 April 18 April 23 April 25 April 27 April 29 April 30 Correct 30 of Item 2

Shed Select April 2 April 3 April 4 April 5 April 8 April 10 April 13 April 17 April 18 April 23 April 25 April 27 April 29 April 30 Correct 32 of Item 2 Select April 2 April 3 April 4 April 5 April 8 April 10 April 13 April 17 April 18 April 23 April 25 April 27 April 29 April 30 Correct 34 of Item 2 Bal.

Bicycles Select April 2 April 3 April 4 April 5 April 8 April 10 April 13 April 17 April 18 April 23 April 25 April 27 April 29 April 30 Correct 37 of Item 2

Accounts Payable Select April 2 April 3 April 4 April 5 April 8 April 10 April 13 April 17 April 18 April 23 April 25 April 27 April 29 April 30 Correct 39 of Item 2 Select April 2 April 3 April 4 April 5 April 8 April 10 April 13 April 17 April 18 April 23 April 25 April 27 April 29 April 30 Correct 41 of Item 2 Select April 2 April 3 April 4 April 5 April 8 April 10 April 13 April 17 April 18 April 23 April 25 April 27 April 29 April 30 Correct 43 of Item 2 Bal.

S. Patel, Capital Select April 2 April 3 April 4 April 5 April 8 April 10 April 13 April 17 April 18 April 23 April 25 April 27 April 29 April 30 Correct 48 of Item 2

S. Patel, Withdrawals Select April 2 April 3 April 4 April 5 April 8 April 10 April 13 April 17 April 18 April 23 April 25 April 27 April 29 April 30 Correct 50 of Item 2

Rental Revenue Select April 2 April 3 April 4 April 5 April 8 April 10 April 13 April 17 April 18 April 23 April 25 April 27 April 29 April 30 Correct 52 of Item 2 Select April 2 April 3 April 4 April 5 April 8 April 10 April 13 April 17 April 18 April 23 April 25 April 27 April 29 April 30 Correct 54 of Item 2 Select April 2 April 3 April 4 April 5 April 8 April 10 April 13 April 17 April 18 April 23 April 25 April 27 April 29 April 30 Correct 56 of Item 2 Bal.

Wages Expense Select April 2 April 3 April 4 April 5 April 8 April 10 April 13 April 17 April 18 April 23 April 25 April 27 April 29 April 30 Correct 59 of Item 2

Maintenance Expense Select April 2 April 3 April 4 April 5 April 8 April 10 April 13 April 17 April 18 April 23 April 25 April 27 April 29 April 30 Correct 61 of Item 2

Repair Expense Select April 2 April 3 April 4 April 5 April 8 April 10 April 13 April 17 April 18 April 23 April 25 April 27 April 29 April 30 Correct 63 of Item 2

Concession Fee Expense Select April 2 April 3 April 4 April 5 April 8 April 10 April 13 April 17 April 18 April 23 April 25 April 27 April 29 April 30 Correct 65 of Item 2

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3. Prepare a trial balance for Patel Rentals as of April 30, 2014. List all the accounts, in the order the ledgers are given. If an amount box does not require an entry, enter "0".

Patel Rentals

Trial Balance

April 30, 2014

4. Compare and contrast how the issues of recognition, valuation, and classification are settled in the transactions of April 3 and 10. The input in the box below will not be graded, but may be reviewed and considered by your instructor.

One of the general rules of the double-entry system is that total debits must always be equal to total credits.

a. True b. False