Bounce House Party Supply Ltd. rents bouncy castles and inflatable slides for pa
ID: 2606637 • Letter: B
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 2016 and had the following transactions in its first month:
Date:
Sept.1
Bounce House Party Supply Ltd. issued 40,000 common shares for $260,000 cash.
1
The company took out a $160,000 bank loan with an interest rate of 6%. The loan terms require that Bounce repay $3,000 in principal on the last day of each month plus interest.
3
Bounce purchased 10 inflatable slides and bouncy castles at a cost of $140,000. The company paid $100,000 at the time of purchase and the balance is due in 30 days.
8
Bounce purchased balloons and other party supplies costing $6,600 on account.
11
A major local company paid Bounce a $2,500 deposit to reserve all of Bounce's inflatables for a grand opening function that is scheduled for the second week in October.
15
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 $8,600 and the inventory related to these sales was determined to have a cost of $5,700.
19
Bounce paid the suppliers $1,700 for goods previously purchased on account.
23
Collections from customers on account totalled $3,400.
31
Bounce made the loan payment required under the terms of the borrowing agreement.
Sept.1
Bounce House Party Supply Ltd. issued 40,000 common shares for $260,000 cash.
1
The company took out a $160,000 bank loan with an interest rate of 6%. The loan terms require that Bounce repay $3,000 in principal on the last day of each month plus interest.
3
Bounce purchased 10 inflatable slides and bouncy castles at a cost of $140,000. The company paid $100,000 at the time of purchase and the balance is due in 30 days.
8
Bounce purchased balloons and other party supplies costing $6,600 on account.
11
A major local company paid Bounce a $2,500 deposit to reserve all of Bounce's inflatables for a grand opening function that is scheduled for the second week in October.
15
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 $8,600 and the inventory related to these sales was determined to have a cost of $5,700.
19
Bounce paid the suppliers $1,700 for goods previously purchased on account.
23
Collections from customers on account totalled $3,400.
31
Bounce made the loan payment required under the terms of the borrowing agreement.
Required Analyze and record these transactions using the template method. ASSETS LIABILITIES SHEQUITY Inflatable Equip Unearned Revenue Loan Payable Common Shares Retained Earnings Date/Ref Cash A/R Inv. A/P REDDExplanation / Answer
Note:
1. 6% Rate of interest is considered as per annum interest.
2016 Asset Asset Asset Asset Liabilities Liabilities Liabilities S/H Equity S/H Equity Date/Ref. Cash A/R Inv. Inflatable Equip. A/P Unearned Revenue Loan Payable Common Shares Retained Earnings R/E/DD September 1 260000 0 0 0 0 0 0 260000 0 260000 September 1 160000 0 0 0 0 0 160000 0 0 420000 September 3 -100000 0 0 140000 40000 0 0 0 0 460000 September 8 0 0 6600 0 6600 0 0 0 0 466600 September 11 2500 0 0 0 0 2500 0 0 0 469100 September 15 4300 4300 -5700 0 0 0 0 0 2900 472000 September 19 -1700 0 0 0 -1700 0 0 0 0 470300 September 23 3400 -3400 0 0 0 0 0 0 0 470300 September 31 -3800 0 0 0 0 0 -3000 0 -800 466500Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.