Question

JOurnalize aug 4 .Purchased 20 helmets (Model T200), on account, for resale purposes only. Helmets cost $75 each, $1,500.00. HPR was charged shipping costs of $25.00, which was also included in the amount owed—use the Merchandise Inventory Account, terms, 2%, n/30. Paid $5,500 for 3 display cases.
Purchased office supplies for $3,500 on account. These supplies will not be resold—use the Office Supplies Inventory account.
Paid $3,600 on a two-year insurance policy, effective August 1.
Signed a two year lease agreement. Paid 3 months of rent in advance, $4,500, plus security deposit of $1,000, total $5,500.
Returned 2 (Model T200) of the helmets purchased on August 4.
Purchased 2 helmets (Model #A20), on account, for resale purposes only. Helmets cost $80 each, $160. HPR was charged shipping costs of $25.00, which was also included in the amount owed—use the Merchandise Inventory Account, terms, 2%, n/30.
Hired 2 workers at $15.50 and 1 assistant at $25.00/hour.
Paid $8,000 in advance to Monmouth Speedway for 300 hours of track time and $15,000 for racing car rental. He rents a 2016 Mercedes C63 AMG DTM race car for $170/hr.

Answer 1

Aug-04	Inventroy - Helmet (Model T200)	1500
	Shipping Cost	250
	Accounts Payable		1750
Aug-04	Display Cases	550
	Cash		550
	Office Suplies	3500
	Accounts Payable		3500
	Insurance	3600
	Cash		3600
	Advance Rent	4500
	Secutiy Deposit	1000
	Cash		5500
	Accounts Payable	150
	Purchase Return		150
	Inventroy - Helmet (Model A20)	160
	Shipping Cost	25
	Accounts Payable		185
	Racing car rental	15000
	Track rental advance	8000
	Cash		23000
	Track rental	43000
	Track rental Payable		43000