Transaction Analysis, Journal Form, T Accounts, and Trial Balance P4. 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. Transaction Analysis, Journal Form, T Accounts, and Trial Balance P4. 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. REQUIRED 1. Prepare journal entries to record these transactions. 2. Set up the following T accounts and post all the journal entries: Cash; Accounts Receivable; Supplies; Shed; Bicycles; Accotunts Payable; S. Patel, Capital; S. Patel, Withdrawals; Rental Revenue; Wages Expense; Maintenance Expense; Repair Expense; and Concession Fee Expense. 3. Prepare a trial balance for Patel Rentals as of April 30, 2014. 4. CONCEPT Compare and contrast how the issues of recognition, valuation, and classification are settled in the transactions of April 3 and 10
