PART 1
Accounting Cycle: Journal Entries w/ Chart of Accounts
Jan Marini won a concession to rent out bicycles in Burnham Park during summer. During the month
of May, Jan Marini completed the following transactions for her bicycle rental business:
May 2 Began business by placing P120,000 in a business checking account.
3 Purchased supplies on account for P1,500.
4 Purchased ten bicycles for P25,000, paying P12,000 down and agreed to pay the
balance in thirty days.
5 Paid P29,000 in cash for a furnished container to store the bicycles and use for other
operations.
6 Received P4,700 in cash for rentals during the first week of operation.
8 Paid P4,000 in cash for shipping and installation costs to place the container at the park
entrance.
9 Hired a part-time assistant to help on weekends.
10 Paid a maintenance person P750 to clean the grounds.
13 Received P5,000 in cash for rentals during the second week of operation.
16 Paid the assistant P480 for a weekend’s work.
17 Paid for the supplies purchased on May 3.
18 Paid a P550 repair bill on bicycles.
20 Received P5,500 in cash for rentals during the third week of operation.
22 Paid the assistant P480 for a weekend’s work.
23 Billed an entity P1,100 for bicycle rentals for employees’ outing.
25 Paid the P3,000 fee for May to the Park Administration for the right to the bicycle
concession.
27 Received P4,100 in cash for rentals during the week.
29 Paid the assistant P480 for a weekend’s work.
30 Transferred P5,000 to a personal checking account.
PART 1
Jan Marini Bike Concession
Chart of Accounts
-----------------------------------------Statement of Financial
Position Accounts
-----------------------------------------Assets
101 Cash
102 Accounts Receivable
103 Supplies
104 Container
105 Bicycles
Liabilities
201 Accounts Payable
202 Notes Payable
Owner’s Equity
301 Marini, Capital
302 Marini, Drawings
------------------------------------------Comprehensive Income
Statement Accounts
------------------------------------------Income
401 Rental Revenues
Expenses
501 Wages Expense
502 Maintenance Expense
503 Repair Expense
504 Concession Fee Expense