Fahed inherited a large sum of money and decided to open up his own business. He
ID: 2417169 • Letter: F
Question
Fahed inherited a large sum of money and decided to open up his own business. He decided to open up a mechanic shop for fixing high end sports cars, naming his business Fahed Fixes Fast Cars.
The following transactions took place during the month of August, 2015:
August 1: Fahed invested 500,000 in a new business called Fahed Fixes Fast Cars.
August 2: Fahed transferred some mechanic tools worth 15,000 from his home to the business.
August 4: The business purchased repair equipment valued at 70,000 on account from ‘Tools R Us’
August 5: The business purchased mechanic tools for 25,000 in cash.
August 6: The business wrote check 101 for 6,000 for rent of the mechanic shop.
August 10: The business received its first customer and made a minor repair for a customer’s car for 5,000 in cash.
August 11: The business repaired a car for 14,000 on account for customer Kobe Bryant.
August 12: The business wrote check 102 in the amount of 10,000 as partial payment for the repair equipment purchased on August 4th from ‘Tools R Us.’
August 14: The business wrote check 103 in the amount of 4,800 for the insurance bill for the month.
August 15: The business repaired a customer’s car for 19,200 on account for customer Derek Jeter.
August 20: The business received a check in the amount of 8,500 as partial payment for the repairs previously made for customer Kobe Bryant on August 11th.
August 21: The business paid the employee salaries for $12,000 in cash.
August 22: Fahed withdrew $4,000 in cash for personal use.
August 23: The business repaired a customer’s car for $7,800 in cash.
August 24: The business received full payment for the repairs made for Derek Jeter on August 15th.
Include an additional 5 transactions of your own below:
August 25:
August 27:
August 28
August 29:
August 31:
Fahed Fixes Fast Cars
Chart of Accounts
101
Cash in Bank
201
A/P - Tool Time
401
Repair Revenue
102
A/R - Kobe Bryant
202
A/P - Tools R Us
501
Rent Expense
103
A/R - Derek Jeter
301
Fahed, Capital
502
Salary Expense
104
A/R - Tom Brady
302
Fahed, Drawings
503
Insurance Expense
105
Mechanic Tools
504
Utilities Expense
106
Repair Equipment
107
Office Supplies
108
Office Equipment
QUESTION : PLEASE WITE THE ADDITIONAL 5 TRANSACTIONS IN A SENTENCE LIKE THE ABOV ONES
PLEASE WRITE IT AS A SCENTNCE TRANSACTION STARTING FROM AUGUST 25 TILL AUGUST 31
JUST 5 TRANSACTIONS IN A SCENTNCE
Fahed Fixes Fast Cars
Chart of Accounts
101
Cash in Bank
201
A/P - Tool Time
401
Repair Revenue
102
A/R - Kobe Bryant
202
A/P - Tools R Us
501
Rent Expense
103
A/R - Derek Jeter
301
Fahed, Capital
502
Salary Expense
104
A/R - Tom Brady
302
Fahed, Drawings
503
Insurance Expense
105
Mechanic Tools
504
Utilities Expense
106
Repair Equipment
107
Office Supplies
108
Office Equipment
Explanation / Answer
August 25: The business incurred expenditure on the repair for $1000 of repairing equipment purchased.
August 27: The business got a loan disbursed from XYZ Bank for $50000 for operating purposes.
August 28: The business paid the insurance premium for the full year for a policy taken and the premium paid was $8000.
August 29: A major theft took place in the premises and the mechanic tools got destroyed. Filed an insurance claim with the insurance company.
August 31: Received claim from the insurance company in cash $14560.
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