Question
Melvin Patel bid for and won a concession to rent bicycles in the local park during the summer. During the month of June, Patel completed
- Melvin Patel bid for and won a concession to rent bicycles in the local park during the summer. During the month of June, Patel completed the following transactions for his bicycle rental business:
June 2 Began business by placing $7,200 in a business checking account in the name of the company.
3 Purchased supplies on account for $150.
4 Purchased 10 bicycles for $2,500, paying $1,200 down and agreeing to pay the rest in 30 days.
5 Paid $2,900 in cash for a small shed to store the bicycles and to use for other operations.
8 Paid $400 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 $7 per hour.
10 Paid a maintenance person $75 to clean the grounds.
13 Received $970 in cash for rentals.
17 Paid $150 for the supplies purchased on June 3.
18 Paid a $55 repair bill on bicycles.
23 Billed a company $110 for bicycle rentals for an employee outing.
25 Paid the $100 fee for June to the Park District for the right to operate the bicycle concession.
27 Received $960 in cash for rentals.
29 Paid the assistant $240.
30 Made a cash withdrawal of $500.
- Prepare journal entries using NAC
- Prepare Income statement from the results of transactions
- Prepare Balance sheet
- Interpret the results of the statements?
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