Question

Question 4 Listed are the April 2020 transactions for Whitters Bike Ltd. Using the joumal entry template provided below, prepare the journal entries: Apr 1 Issued common shares in exchange for cash of $75,000 and equipment of $25,000. Apr 1 Paid monthly rent of $1,500. Apr 4 Purchased inventory, on account for $31,350. Apr 5 Purchased office supplies for $3,000 cash. Performed bike servicing for customers in the amount of $500; received $300 in cash and Apr 11 billed customers for the remainder. Apr 17 Sold 5 bikes for cash of $15,000 Apr 22 Sold 2 bikes on account for $2,500. Apr 26 Paid $2,250 in salaries and $500 in utilities Apr 30 collected customer payment for bikes sold on April 22. Apr 30 Remitted payment to vendor for inventory purchased on April 4.

Answer 1

Date	Account titles and explanation		Debit	Credit
Apr-01	Cash		$             75,000
	Equipment		$             25,000
	Common Stock			$       100,000
Apr-01	Rent expense		$               1,500
	Cash			$           1,500
Apr-04	Inventory		$             31,350
	Accounts Payable			$         31,350
Apr-05	Supplies		$               3,000
	Cash			$           3,000
Apr-11	Accounts Receivable		$                  200
	Cash		$                  300
	Service Revenue			$              500
Apr-17	Cash		$             15,000
	Sales Revenue			$         15,000
Apr-22	Accounts Receivable		$               2,500
	Sales Revenue			$           2,500
Apr-26	Salaries expenses		$               2,250
	Utilities expenses		$                  500
	Cash			$           2,750
Apr-30	Cash		$               2,500
	Accounts Receivable			$           2,500
Apr-30	Accounts Payable		$             31,350
	Cash			$         31,350