Scenario: Assume that a relatively new company you and you group members are involved with has presented you with the following transactions for 2021 from the books of the business. This company operates one bank account to reflect all cash and cheque transactions. You are now required to read these transactions carefully then prepare the relevant documents and books as outlined in the requirements below. 1 Aug Started business with $150, 000 in the bank 3 Aug Bought supplies on credit from Right Way Manufacturers 24 Boxes Air Filter $720.00 per box 96 Bottles fuel injector cleaner $200.00 per bottle 48 Boxes Spark Plug $300.00 per box 36 Boxes Brake Shoe $580.00 per box 24 Boxes Disc Pads $400.oo per box 5 Aug Provided services for cash less 10% discount 12 small motorbike engines $350.00 per engine 6 large motorbike engines (full service) $950.00 per engine 8 medium size motorbike engines (full service) $800.00 per engine 7 Aug Paid Rent by cheque $5,000.00 10 Aug Paid Wages by cheque $8,000.00 10 Aug Bought Fixtures from CT Limited $3,500.00 paying by cash 11 Aug Provided services on credit to Auto Care. 24 small motorbike engines $350.00 per engine 8 large motor bike engines (partial service) $650.00 per engine 12 medium size motorbike engine (partial service) $550.00 per engine 12 Aug Bought Fixtures on credit from CT Ltd $8,000.00 13 Aug Received a loan from NBC cash $25,000.00 14 Aug Provided services on credit to P&S Auto 18 Large motorbike engines (full service) $950.00 per engine 12 medium size motor bike engines $650.00 per engine 24 medium size motorbike engines $550.00 per engine 20 small motorbike engines $350.00 per engine 21 Aug Paid CT Ltd by cheque $8,000.00 22 Aug Paid wages cash $8,000.00 23 Aug Paid Right Way Manufacturer the amount owing to them by cheque, they allowed us a 15% discount 27 Aug P&S Auto paid the amount owing by them in Cash less 10 % discount 27 Aug Electricity paid by cash $1,500.00 28 Aug The owner took $5000 out of the bank for his personal use. 28 Aug Provided services for cash 12 small motorbike engines $350.00 per engine 6 medium size motorbike engines $550.00 per engine 4 medium size motor bike engines $800.00 per engine 29 Aug Bought supplies on credit from big J Manufacturers 4 Bottles Fuel Injector Cleaner $200.00 per bottle 9 Boxes Air Filters $720.00 per box 8 Boxes Sparks Plugs $300.00 per box 30 Aug Provided service for cash 8 small motorbike engines $350.00 per engine 7 Large motorbike engines $950.00 per engine 8 Medium motorbike engines $550.00 per engine B. Record the transactions stated above in the general journal.C. Post the transactions to the general ledger and balance off each accountD. Extract a trial balance on August 31st.E. Prepare an Income Statement for the month ended August 31st, the owner's equity statement and a Balance Sheetas at that date 31 AugSupplies on hand$720.00 per box$200.00 per bottle$300.00 per box$580.00 per box$400.00 per box5 Boxes Air Filter6 Bottles fuel injector cleaner12 Boxes Spark Plug13 Boxes Brake Shoe9 Boxes Disc PadsTo avoid duplication of account names and the use of improper account names, the company has provided the followinglist of accounts used to record its transactions as extracted from its chart of accounts:CapitalCashSuppliesJ ManufacturersService RevenueDiscount AllowedRent ExpenseWages ExpenseSupplies ExpenseFixturesAuto CareLoan NBCDiscount ReceivedElectricity ExpenseDrawingsRequirements:A. Create a name for the owner of the company and give the business a name that reflects the operations of theorganization.

Question

Scenario: Assume that a relatively new company you and you group members are involved with has presented you with the following transactions for 2021 from the books of the business.  This company operates one bank account to reflect all cash and cheque transactions. You are now required to read these transactions carefully then prepare the relevant documents and books as outlined in the requirements below. 1 Aug             Started business with $150, 000 in the bank 3 Aug             Bought supplies on credit from Right Way Manufacturers                        24 Boxes Air Filter                                                               $720.00 per box                        96 Bottles fuel injector cleaner                                          $200.00 per bottle                        48 Boxes Spark Plug                                                          $300.00 per box                        36 Boxes Brake Shoe                                                         $580.00 per box                        24 Boxes Disc Pads                                                                        $400.oo per box 5 Aug                         Provided services for cash less 10% discount                        12 small motorbike engines                                               $350.00 per engine                        6 large motorbike engines (full service)                           $950.00 per engine                        8 medium size motorbike engines (full service)             $800.00 per engine 7 Aug             Paid Rent by cheque                                                          $5,000.00 10 Aug           Paid Wages by cheque                                                      $8,000.00 10 Aug           Bought Fixtures from CT Limited                                      $3,500.00                        paying by cash 11 Aug           Provided services on credit to Auto Care.                        24 small motorbike engines                                               $350.00 per engine                        8 large motor bike engines (partial service)                    $650.00 per engine                        12 medium size motorbike engine (partial service)       $550.00 per engine 12 Aug           Bought Fixtures on credit from CT Ltd                             $8,000.00 13 Aug           Received a loan from NBC cash                                      $25,000.00                       14 Aug           Provided services on credit to P&S Auto                        18 Large motorbike engines (full service)                       $950.00 per engine                        12 medium size motor bike engines                                 $650.00 per engine                        24 medium size motorbike engines                                  $550.00 per engine                        20 small motorbike engines                                               $350.00 per engine 21 Aug           Paid CT Ltd by cheque                                                       $8,000.00 22 Aug           Paid wages cash                                                                 $8,000.00 23 Aug           Paid Right Way Manufacturer the amount owing to them                        by cheque, they allowed us a 15% discount 27 Aug           P&S Auto paid the amount owing by them in                        Cash less 10 % discount    27 Aug           Electricity paid by cash                                                       $1,500.00 28 Aug           The owner took $5000 out of the bank for his personal use. 28 Aug           Provided services for cash                        12 small motorbike engines                                               $350.00 per engine                        6 medium size motorbike engines                                                $550.00 per engine                        4 medium size motor bike engines                                   $800.00 per engine 29 Aug           Bought supplies on credit from big J Manufacturers                        4 Bottles Fuel Injector Cleaner                                          $200.00 per bottle                        9 Boxes Air Filters                                                                $720.00 per box                        8 Boxes Sparks Plugs                                                         $300.00 per box 30 Aug           Provided service for cash                        8 small motorbike engines                                                 $350.00 per engine                        7 Large motorbike engines                                                            $950.00 per engine                        8 Medium motorbike engines                                            $550.00 per engine B. Record the transactions stated above in the general journal.C. Post the transactions to the general ledger and balance off each accountD. Extract a trial balance on August 31st.E. Prepare an Income Statement for the month ended August 31st, the owner's equity statement and a Balance Sheetas at that date 31 AugSupplies on hand$720.00 per box$200.00 per bottle$300.00 per box$580.00 per box$400.00 per box5 Boxes Air Filter6 Bottles fuel injector cleaner12 Boxes Spark Plug13 Boxes Brake Shoe9 Boxes Disc PadsTo avoid duplication of account names and the use of improper account names, the company has provided the followinglist of accounts used to record its transactions as extracted from its chart of accounts:CapitalCashSuppliesJ ManufacturersService RevenueDiscount AllowedRent ExpenseWages ExpenseSupplies ExpenseFixturesAuto CareLoan NBCDiscount ReceivedElectricity ExpenseDrawingsRequirements:A. Create a name for the owner of the company and give the business a name that reflects the operations of theorganization.

Accepted Answer

The accounting process starts from recording the day to day transactions in the general journal. The…