Question

For this assignment, you will use the manual accounting system to account for JP Racing Corporation's transactions during the first week in September, 2018.

Use 2018 for the year. The company's transactions are reported on source documents, such as memos, invoices, and cash receipts.

please include descriptions.

You must examine the source documents, prepare the journal entries required to record the transactions, and put into the General Journal

1. Owners Cash investment 9/1/18 to JP Racing received 9/1/18

Receipt #1 Jackson Parks Investment Check of $25,000

2. Racing supplies- recieved 9/1/18

will pay later 9/30 - liability

bought from fast track company

28 motor oil 445.20

20 oil filters 135.00

total 580.20

3 Race Car - already paid for 9/2/18 - paid to Bristol Vintage Autos

check 101 invoice 5108

1 mustang GT 16500

4. Track Rent

Vernon Speedway 9/3/18 - 3 hours a day for 8 sept days 1 october day, 9 total days paid for

check 102

cash paid for $4590.00

5. JP Racing charges Verreault enterprises for lessons 9/3/18

invoice #001

$1,560 for lessons

payable in 30 days - accounts receivable

6. JP pays fast track company - check #103

$350 on 9/4 invoice 386

payment on 9/1

7. Cash Reciepts - Recieved

#2 9/5 for driving lessons $2,100.00

#3 9/5 Partial Verreault Collection - $1,100.00

8. Racing Equipment for JP will pay later to Hi-Performance Tools Inc.

invoice #1742 9/6. pay by 9/30

1 tire balance $1,524.36

1 oil basin $289.74

1 wrench kit $248.86

total = $2,062.96

Answer 1

Journal Entries
date	explanation	debit	credit
9/1/2018	cash	25000
	capital		25000
1-Sep	supplies	580.2
	accounts payable-fast track		580.2
2-Sep	racing car	16500
	cash		16500
3-Sep	prepaid rent	4590
	cash		4590
3-Sep	accounts receivables	1560
	revenue from lessons		1560
4-Sep	accounts payable-fast track	350
	cash		350
5-Sep	cash	3200
	revenue from lessons		2100
	accounts receivables		1100
6-Sep	racing equipment
	accounts payable - high performance2062.96