BradBrad CarterCarter started a mobile DJ business named Party WheelsParty Wheel
ID: 2400514 • Letter: B
Question
BradBrad
CarterCarter
started a mobile DJ business named
Party WheelsParty Wheels?,
?Inc., on
AprilApril
?1,
20162016.
In the month of
AprilApril?,
prior to providing services to? customers, the business incurred six transactions which have been posted to the accounts as?follows:
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?(Click the icon to view the? accounts.)Read the requirements
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.
Requirement 1. Based on the? accounts, create the journal entries that resulted from the six transactions. Include explanations with each journal entry. ?(Record debits? first, then credits. Select the explanation on the last line of the journal entry? table.)
Journal Entry
Date
Accounts and Explanations
Debit
Credit
(1)
Journal Entry
Date
Accounts and Explanations
Debit
Credit
(2)
Journal Entry
Date
Accounts and Explanations
Debit
Credit
(3)
Journal Entry
Date
Accounts and Explanations
Debit
Credit
(4)
Journal Entry
Date
Accounts and Explanations
Debit
Credit
(5)
Journal Entry
Date
Accounts and Explanations
Debit
Credit
(6)
Requirement 2. Calculate the ending balance in each account. Enter the? amount, along with a? "Bal" reference on the appropriate side of each? T-account.
Cash
Supplies
Equipment
Building
(1)
30,000
(4)
2,000
(2)
1,200
(4)
2,000
(3)
120,000
(5)
2,000
(6)
400
Accounts payable
Notes payable
Common stock
(6)
400
(2)
1,200
(5)
2,000
(3)
120,000
(1)
30,000
Requirement 3. Prepare the trial balance for
Party WheelsParty Wheels?,
?Inc., at
AprilApril
?30,
20162016.
Party Wheels, Inc.
Trial Balance
April 30, 2016
Account
Debit
Credit
Total
Requirement 4. Prepare a balance sheet for
Party WheelsParty Wheels?,
?Inc., as of
AprilApril
?30,
20162016.
First complete the asset portion of the? statement, and then complete the liabilities and? stockholders' equity sections of the statement. ?(If a box is not used in the? statement, leave the box? empty; do not select a label or enter a? zero.)
Party Wheels, Inc.
Balance Sheet
April 30, 2016
Assets
Total assets
Liabilities
Total liabilities
Stockholders' Equity
Total liabilities and stockholders' equity
Journal Entry
Date
Accounts and Explanations
Debit
Credit
(1)
Explanation / Answer
Answers
Journal Entry
Date
Accounts and Explanations
Debit
Credit
1
Cash
$ 30,000.00
Common Stock
$ 30,000.00
(common stock issued and acash received)
Journal Entry
Date
Accounts and Explanations
Debit
Credit
2
Supplies
$ 1,200.00
Accounts Payable
$ 1,200.00
(Supplies purchased on account)
Journal Entry
Date
Accounts and Explanations
Debit
Credit
3
Building
$ 120,000.00
Notes Payable
$ 120,000.00
(Building purchased and notes payable issued against purchase)
Journal Entry
Date
Accounts and Explanations
Debit
Credit
4
Equipment
$ 2,000.00
Cash
$ 2,000.00
(Equipment purchased for cash)
Journal Entry
Date
Accounts and Explanations
Debit
Credit
5
Notes Payable
$ 2,000.00
Cash
$ 2,000.00
(Notes payable paid in cash)
Journal Entry
Date
Accounts and Explanations
Debit
Credit
6
Accounts Payable
$ 400.00
Cash
$ 400.00
(Cash paid to accounts payable)
Cash
Supplies
Equipment
Building
1
$ 30,000.00
4
$ 2,000.00
2
$ 1,200.00
Bal
$ 1,200.00
4
$ 2,000.00
Bal
$ 2,000.00
3
$ 120,000.00
Bal
$ 120,000.00
5
$ 2,000.00
6
$ 400.00
Bal
$ 25,600.00
Total
$ 30,000.00
Total
$ 30,000.00
Total
$ 1,200.00
Total
$ 1,200.00
Total
$ 2,000.00
Total
$ 2,000.00
Total
$ 120,000.00
Total
$ 120,000.00
Accounts payable
Notes payable
Common stock
6
$ 400.00
2
$ 1,200.00
5
$ 2,000.00
3
$ 120,000.00
Bal
$ 30,000.00
1
$ 30,000.00
Bal
$ 800.00
Bal
$ 118,000.00
TOtal
$ 1,200.00
TOtal
$ 1,200.00
TOtal
$ 120,000.00
TOtal
$ 120,000.00
TOtal
$ 30,000.00
TOtal
$ 30,000.00
Party Wheels, Inc.
Trial Balance
April 30, 2016
Account
Debit
Credit
Cash
$ 25,600.00
Supplies
$ 1,200.00
Equipment
$ 2,000.00
Building
$ 120,000.00
Accounts payable
$ 800.00
Notes payable
$ 118,000.00
Common stock
$ 30,000.00
Total
$ 148,800.00
$ 148,800.00
Party Wheels, Inc.
Balance Sheet
April 30, 2016
Assets
Cash
$ 25,600.00
Supplies
$ 1,200.00
Equipment
$ 2,000.00
Building
$ 120,000.00
Total assets
$ 148,800.00
Liabilities
Accounts payable
$ 800.00
Notes payable
$ 118,000.00
Total liabilities
$ 118,800.00
Stockholders' Equity
Common stock
$ 30,000.00
Total liabilities and stockholders' equity
$ 148,800.00
Journal Entry
Date
Accounts and Explanations
Debit
Credit
1
Cash
$ 30,000.00
Common Stock
$ 30,000.00
(common stock issued and acash received)
Journal Entry
Date
Accounts and Explanations
Debit
Credit
2
Supplies
$ 1,200.00
Accounts Payable
$ 1,200.00
(Supplies purchased on account)
Journal Entry
Date
Accounts and Explanations
Debit
Credit
3
Building
$ 120,000.00
Notes Payable
$ 120,000.00
(Building purchased and notes payable issued against purchase)
Journal Entry
Date
Accounts and Explanations
Debit
Credit
4
Equipment
$ 2,000.00
Cash
$ 2,000.00
(Equipment purchased for cash)
Journal Entry
Date
Accounts and Explanations
Debit
Credit
5
Notes Payable
$ 2,000.00
Cash
$ 2,000.00
(Notes payable paid in cash)
Journal Entry
Date
Accounts and Explanations
Debit
Credit
6
Accounts Payable
$ 400.00
Cash
$ 400.00
(Cash paid to accounts payable)
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