Question

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		Bounce House Party Supply Ltd. issued 42,400 common shares for $275,600 cash.
1		The company took out a $169,600 bank loan with an interest rate of 6%. The loan terms require that Bounce repay $3,200 in principal on the last day of each month plus interest.
3		Bounce purchased 10 inflatable slides and bouncy castles at a cost of $148,400. The company paid $106,000 at the time of purchase, and the balance is due in 30 days.
8		Bounce purchased balloons and other party supplies costing $7,000 on account.
11		A major local company paid Bounce a $2,700 deposit to reserve all of Bounce’s inflatables for a grand opening function that is scheduled for the second week in October.
15		(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 $9,100 and (b) the inventory related to these sales was determined to have a cost of $6,000.
19		Bounce paid the suppliers $1,800 for goods previously purchased on account.
23		Collections from customers on account totalled $3,600.
30		Bounce made the loan payment required under the terms of the borrowing agreement.

Analyze and record these transactions. (Enter amounts that decrease account balance using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Indicate whether it is Revenues, Expenses or Dividends declared in the last column. In case if there is no effect then select "Not Applicable". Post entries in the order presented in the problem statement.)

			Assets								Liabilities						Shareholders’ Equity
Date/Ref.			Cash		Accounts Receivable		Inventory		Inflatable Equipment		Accounts Payable		Unearned Revenue		Loan Payable		Common Shares		Retained Earnings		Revenues/Expenses/ Dividends Declared
Choose a transaction date.Sept. 1Sept. 3Sept. 8Sept. 11Sept. 15Sept. 19Sept. 23Sept. 30 Sept. 1Sept. 3Sept. 8Sept. 11Sept. 15Sept. 19Sept. 23Sept. 30			$Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Select an option.RevenuesExpensesDevidends DeclaredNot Applicable RevenuesExpensesDevidends DeclaredNot Applicable
Choose a transaction date.Sept. 1Sept. 3Sept. 8Sept. 11Sept. 15Sept. 19Sept. 23Sept. 30 Sept. 1Sept. 3Sept. 8Sept. 11Sept. 15Sept. 19Sept. 23Sept. 30			$Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Select an option.ExpensesNot ApplicableRevenuesDevidends Declared RevenuesExpensesDevidends DeclaredNot Applicable
Choose a transaction date.Sept. 1Sept. 3Sept. 8Sept. 11Sept. 15Sept. 19Sept. 23Sept. 30 Sept. 1Sept. 3Sept. 8Sept. 11Sept. 15Sept. 19Sept. 23Sept. 30			$Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Select an option.Not ApplicableRevenuesDevidends DeclaredExpenses RevenuesExpensesDevidends DeclaredNot Applicable
Choose a transaction date.Sept. 1Sept. 3Sept. 8Sept. 11Sept. 15Sept. 19Sept. 23Sept. 30 Sept. 1Sept. 3Sept. 8Sept. 11Sept. 15Sept. 19Sept. 23Sept. 30			$Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Select an option.Devidends DeclaredNot ApplicableRevenuesExpenses RevenuesExpensesDevidends DeclaredNot Applicable
Choose a transaction date.Sept. 1Sept. 3Sept. 8Sept. 11Sept. 15Sept. 19Sept. 23Sept. 30 Sept. 1Sept. 3Sept. 8Sept. 11Sept. 15Sept. 19Sept. 23Sept. 30			$Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Select an option.ExpensesNot ApplicableDevidends DeclaredRevenues RevenuesExpensesDevidends DeclaredNot Applicable
Choose a transaction date.Sept. 1Sept. 3Sept. 8Sept. 11Sept. 15Sept. 19Sept. 23Sept. 30 Sept. 1Sept. 3Sept. 8Sept. 11Sept. 15Sept. 19Sept. 23Sept. 30	(a)		$Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Select an option.ExpensesRevenuesDevidends DeclaredNot Applicable RevenuesExpensesDevidends DeclaredNot Applicable
Choose a transaction date.Sept. 1Sept. 3Sept. 8Sept. 11Sept. 15Sept. 19Sept. 23Sept. 30 Sept. 1Sept. 3Sept. 8Sept. 11Sept. 15Sept. 19Sept. 23Sept. 30	(b)		$Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Select an option.Devidends DeclaredRevenuesNot ApplicableExpenses RevenuesExpensesDevidends DeclaredNot Applicable
Choose a transaction date.Sept. 1Sept. 3Sept. 8Sept. 11Sept. 15Sept. 19Sept. 23Sept. 30 Sept. 1Sept. 3Sept. 8Sept. 11Sept. 15Sept. 19Sept. 23Sept. 30			$Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Select an option.Not ApplicableExpensesRevenuesDevidends Declared RevenuesExpensesDevidends DeclaredNot Applicable
Choose a transaction date.Sept. 1Sept. 3Sept. 8Sept. 11Sept. 15Sept. 19Sept. 23Sept. 30 Sept. 1Sept. 3Sept. 8Sept. 11Sept. 15Sept. 19Sept. 23Sept. 30			$Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Select an option.ExpensesNot ApplicableRevenuesDevidends Declared RevenuesExpensesDevidends DeclaredNot Applicable
Choose a transaction date.Sept. 1Sept. 3Sept. 8Sept. 11Sept. 15Sept. 19Sept. 23Sept. 30 Sept. 1Sept. 3Sept. 8Sept. 11Sept. 15Sept. 19Sept. 23Sept. 30	Principal		$Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Select an option.RevenuesDevidends DeclaredNot ApplicableExpenses RevenuesExpensesDevidends DeclaredNot Applicable
Choose a transaction date.Sept. 1Sept. 3Sept. 8Sept. 11Sept. 15Sept. 19Sept. 23Sept. 30 Sept. 1Sept. 3Sept. 8Sept. 11Sept. 15Sept. 19Sept. 23Sept. 30	Interest		$Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Enter a dollar amount.		Select an option.RevenuesNot ApplicableDevidends DeclaredExpenses RevenuesExpensesDevidends DeclaredNot Applicable

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Answer 1

		Assets					Liabilities				Stockholders' Equity
Date		Cash	Accounts Receivable	Inventory	Inflatable Equipment		Accounts payable	Unearned Revenue	Loan payable		Common Shares	Retained Earnings		Revenues/Expenses/ Dividends declared
1-Sep		$275,600									$275,600
1-Sep		$169,600							$169,600
3-Sep		($106,000)			$148,400		$42,400
8-Sep				$7,000			$7,000
11-Sep		$2,700						$2,700
15-Sep	(a)	$4,550	$4,550									$9,100		Revenue
	(b)			($6,000)								($6,000)		Expense
19-Sep		($1,800)					($1,800)
23-Sep		$3,600	($3,600)
30-Sep	Principal	$3,200							$3,200
	Interest	$848										$848		Expense

*Interest = $169,600 x 6% x (1/12) = $848