Question

View Policies Current Attempt in Progress Bounce House Party Supply Ltd.rents bouncy castles and inflatable slides for parties, school fairs, and company picnics. The company also sells party supplies such as balloons, streamers, and piñatas. The company started business in September and had the following transactions in its first month: Date: Sept. 1 1 3 8 11 Bounce House Party Supply Ltd. issued 29,600 common shares for $192,400 cash. The company took out a $118,400 bank loan with an interest rate of 6%. The loan terms require that Bounce repay $2,200 in principal on the last day of each month plus interest. Bounce purchased 10 inflatable slides and bouncy castles at a cost of $103,600. The company paid $74,000 at the time of purchase, and the balance is due in 30 days. Bounce purchased balloons and other party supplies costing $4.900 on account. A major local company paid Bounce a $1,900 deposit to reserve all of Bounce's inflatables for a grand opening function that is scheduled for the second week in October (a) Bounce recorded its party supply sales of the first two weeks of the month. Total sales (half in cash and half on account) amounted to $6,400 and (b) the inventory related to these sales was determined to live a cost of $4,200. Bounce paid the suppliers $1,300 for goods previously purchased on account Collections from customers on account totalled $2,500. Bounce made the loan payment required under the terms of the borrowing agreement. 15 19 23 30 Analyze and record these transactions. (Enter amounts that decrease account balance using either a negative sign preceding the number ex. -45 or parentheses e... 1451. Indicate

Answer 1

Date/Ref. Cash Accounts Receivable Inventory Inflatable Equipment = Accounts Payable Unearned Revenue Loan Payable Common Shares Retained Earnings Revenues/Expenses/ Dividends Declared $192,400 $192,400 $118,400 ($74,000) $118,400 $103,600 $29,600 $4,900 $4,900 $1,900 $1,900 $3,200 $3,200 Sept. 1 Sept. 1 Sept. 3 Sept. 8 Sept. 11 Sept. 15 (a) Sept. 15 (b) Sept. 19 Sept. 23 Sept. 30 Sept. 30 Total $6,400 Revenue ($4,200) Expenses ($4,200) ($1,300) ($2,500) ($1,300) $2,500 ($2,200) ($592) $240,308 ($2,200) ($592) Expenses $1,608 $700 $700 $103,600 $33,200 $1,900 $116,200 $192,400

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