Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION#2 (28 Marks) Jim started a new business, Olinda Racing Inc., on January 1, 2012, to operate his rally racing team. The following transactions took

image text in transcribed
QUESTION#2 (28 Marks) Jim started a new business, Olinda Racing Inc., on January 1, 2012, to operate his rally racing team. The following transactions took place over the next month: January 2 issued common shares (share capita) of the company to Jim for his payment of $ 10,000 cash to the company transferred into the business Jim's Suzuki rally car which had an appraised value of $36,000. The car will be Cepreciated on a straight line basis over 36 months with no anticipated residual value at the end of the 36 months. The business recorded ashareholder loan to Jim for the value of the car. purchased and paid supplies including tires and other parts for a total of S 1,200. APTpaid the insurance company S 3,000 for one year 0 for the car. paid S 3.000 for garagefenb for six months from January to June inclusive borrowed $ 10,000 from is at 12% per annum and is paid at the end of each month. There are no regularly required principal gning a note payable The interest on the note ADS yments. paid entry fees expense of $ 800 for a race to be run on February 4 January 31 received an invoice from S&S Motorsports of Georgetown fortuning work done on the car in January in the amount of $ 3,000 which will be Febru determined that there was $ 1,000 ofsupplies on hand at month end. - billed the University of Windsor for $ 1,000 in advertising fees which will be paid by the University in March. Olinda Racing Ine. employs proper Canadian accounting principles which Jim learned in 70-151. Required Prepare all journal entries (including both transaction and adjusting entries), required for the month of January which result from the above transactions. Assume that the business records adjusting entries at the end of each month, but not closing entries. Entries should be in proper journal entry format, except that explanations are not required

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management In The Sport Industry

Authors: Matthew T Brown, Daniel Rascher, Mark S Nagel, Chad McEvoy

2nd Edition

9781621590118

More Books

Students also viewed these Accounting questions

Question

11.5 Describe the grievance procedure in a union environment.

Answered: 1 week ago

Question

11.6 Explain union decertification.

Answered: 1 week ago