Answer

Journal Entry
From 01 May to 31 July
Entry

Amount in $

Account

Debit
1

Oil and Grease Inventory (A)

6320

Security Deposit (A)

Uniform and Other Operating Supplies
Inventory (A)

4130

Security Deposit (A)

Equipment (A)

75000

Security Deposit (A)

Accounts Payable (L)

Pre Paid Rent (A)

1500
Cash (A)

Cash (A)

105300

5
Sales from CarServices

Cash (A)

3300
Sales from Parking Space (

Oil and Grease Inventory (A)

7

8230
Cash (A)

Wages Expenses (E)

34560

8
Cash (A)
Utilities Expenses (E)
9

1700

9
Cash (A)
10

Misslleneous Expense (E)

6600
Cash (A)

11

Lease Expenses (E)

26400
Cash (A)

Account Payable (L)

2490

12
13

Cash (A)
Dividend

4500
Cash (A)

Account Receivable (A)

14

15
16
17
18
19
20
21
22

340

Sales from Parking

Account Receivable (A)
730
Sales from Services
Wages Expenses(E)
2100
Accrued Wages (L)
Utilities Expenses(E)
350
Accrued Expenses (L)
Cheque
400
Deferred revenue (L)
Depreciation Expenses (E)
3900
Accumulated Depreciation (A)
Insurance Expenses (E)
300
Prepaid Insurance (A)
Rent Expenses (E)
1500
Prepaid Rent (A)
Cost of Goods Sold (E)
9260
Inventory (A)

The cash T account is -

Cash
2800
105300
3300

1500
8230
34560
1700
6600
26400
2490
4500
To balance 25420
111400
111400

Journal Entry
Up to 30 June

y
Amount in $

Entry

Amount in $

Account

Credit
6320

Debit
1

Cash

40000
Owner Equity

Security deposit to
National

4130

40000
Cash

Office Furniture

6000

3
25200

Cash

49800

Cash

10000

4
Owner Equity
1500

Prepaid Insurance
5

1200
Cash

105300

3300

8230

34560

Trial Balance
As of 30 June
Amount in $
Account
Debit

Sl. No.
1

Cash

2800

Prepaid Insurance

1200

Office Furniture

6000

Security deposit
to National

40000

1700

Owner Equity
Total

6600
26400
2490
4500

340

730
2100
350
400
3900
300
1500
9260

50000

y
e

Trial Balance
As of July' 31

Amount in $
Credit
40000

40000

6000

10000

1200

e
e
Amount in $
Credit

Sl.
No.

Account

Cash

Cheque

Prepaid Insurance

Office Furniture

Security deposit
to National

Equipment

Oil and Grease

Inventory

Uniform and Other Supplies

Accounts Payable

10

Prepaid rent

11

Sales / revenue from

service

12

Parking Revenue

13

Wages Expenses

14

Dividend

15

Utilities Expenses

16

Misslleneous Expense

17

Lease / rent Expenses

18

Account Receivable

50000

19

Accrued Wages

50000

20

Accrued Expenses

21
22
23
24

Deferred revenue
Depreciation Expenses
Accumulated Depreciation
Insurance Expenses

25

Owner Equity / Capital

26
27

Cost of Good Sold

Total

Answer: 2
1.
2.
3.
4.
5.
6.

Capital: $ 50000
Accumulated Depreciation: $ 3900
Prepaid Assets: $ 900
Cash Balance: $ 25420
Account Receivable: $ 1070
Liabilities: $ 50160

Answer: 3
1.
2.
3.
4.
5.

Withdrawals: $ 4500
Cost of Sales: $ 9260
Parking Revenue: $ 3640
Lease Expenses: $ 27900
Total Revenue: $ 109670

Answer 4:
we have considered a cheque of $ 400 as Account receivables in current statement
$ 340 receivable from overnight parkers may go into bad debts.

Balan
As o

Trial Balance
As of July' 31
Amount in $
Debit

Credit

Assets
Current Assest

25420

Cash

400

Prepaid Insurance

900

Total Current Assest

6000

Fixed Assets

4350

Security Deposit to National

75000

Office Furniture

5290

Total Fixed Assets

4130

Total Assets
47310

Balan
As o

106030

3640

Assets

36660

Current Assest

4500

Cash

2050

Cheque

6600

Prepaid Insurance

27900

Oil and Grease

Inventory

1070

Uniform and Other Supplies

2100

Account Receivable

350

Total Current Assest

400

Fixed Assets
Equipment
Office Furniture
Accumulated Depreciation
Security deposit
to National
Total Fixed Assets
Total Assets

3900
3900
300
50000
9260
213730

unt receivables in current statement.

ers may go into bad debts.

213730

Income
01 Ma
Revenue from Service
Revenue from Parking Rent
Total Revenue
Cost of Goods Sold
Gross Margin
Operating Expenses
Wages Expenses
Utilities Expenses
Misslleneous Expense
Lease / rent Expenses
Depreciation Expenses
Insurance Expenses
Total operating expenses
Total Income
Dividend
Total retained earnings

Balance Sheet
As on 30-Apr
Assets

Liabilities & Owners Equity

2800 Owner's Equity

50000

1200
4000

40000
6000
46000
Total Liabilities &
50000 Owners Equity

50000

Balance Sheet
As on July'31
Assets

Liabilities & Owners Equity

Current Liabilities
25420 Accounts Payable
400 Accrued Wages
900 Accrued Expenses
5290 Deferred revenue
4130

47310
2100
350
400

1070

Total Current
Liabilities

50160

37210
75000
6000
-3900 Owner's Equity
4350 Retained Earnings
81450
118660

Income Statement
01 May to 31 Jul
106030
3640
109670
9260
100410
36660
2050
6600
27900
3900
300
77410
23000
4500
18500

50000
18500
118660