Question

Question 8 of 10 < 7 22 E 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 Bounce House Party Supply Ltd. Issued 31,200 common shares for $202,800 cash, The company took out a $124,800 bank loan with an interest rate of 6%. The loan terms require that Bounce repay $2,300 in principal on the last day of each month plus interest. Bounce purchased 10 inflatable slides and bouncy castles at a cost of $109.200. The company paid $78,000 at the time of purchase, and the balance is due in 30 days. Bounce purchased balloons and other party supplies costing $5.100 on account. A major local company paid Bounce a $2.000 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 $6,700 and (b) the inventory related to these sales was determined to have a cost of $4,400. Bounce paid the suppliers $1,300 for goods previously purchased on account. Collections from customers on account totalled $2.700, Bounce made the loan payment required under the terms of the borrowing agreement. 11 15 19 23 30 Analyze and record these transactions. (Enter amounts that decrease account balance using either a negative sign preceding the number es 45 or parentheses es. (45) Indicate whether it is Revenues, Experises or Dividends dedored in the last column. In case if there is no effect then select "Not Applicable". Post entries in the order presented in the problern statement) Assets Accounts Recevable Date/Rof Cash Inventory Sopi

Answer 1

Assets Liabilities Stockholden's Equity unearned Sep. Cash Se Castles ( Supplies (A/Receivable Alp Note Payable Revenue Commen stk Retaind Erun! 1 +202 Boo +202 800 I 2. +124800 to v I+124300 3:1-78000 +109200 +31200 8. +5100 7 S100 I +2000 IL +2000 +2300 15 +3350 -4400 +3350 19.-1300 23. + 2700 1-2700 - 2300 - 624 30. - 2924 7oo 2000 253426109200 122 500 202800 650 1676 Total Assets 363976 Total liabilities + St. Ef 363976 Revenue -1300 Expense 35000

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