Books of Account of M/s.

Waltham Oil and Lube Center

1)
Journal Entries for the period May 01 to July 31
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Frank Knight Capital A/c
$50000
($ 40000 + $ 10000)
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National Oil & Lube Center security Deposit A/c.
Dr. $ 40000
To Bank A/c
Cr.$40000
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Insurance Charges A/c.
Dr. $1200
Bank A/c.
Cr. $1200
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Oil & Grease Inventory A/c
Dr. $ 6320
Uniforms & Operating Supplier
Dr. $ 4130
Lease Rental (May) A/c.
Dr. $ 1500
National oil & Lube Security Deposit A/c
Cr. $ 11950
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Equipments A/c
Dr. $ 75000
National oil & Lube Center (Asset Supply) A/c.
Cr. $ 75000
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National oil & Lube Center (Asset Supply) A/c.
Dr. $ 25200
National oil & Lube Center Security Deposit A/c.
Cr. $ 25200
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National oil & Lube Center (Asset Supply) A/c.
Dr. $ 49800
National oil & Lube Center (Asset Supply) Loan A/c.
Cr. $ 49800
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Depreciation A/c
Dr. $ 3750
Equipments A/c
Cr. $3750
_________________________________________________________________________
Profit & Loss A/c
Dr. $3300
Parking Rent Income
Cr. $3300
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Profit & Loss A/c
Dr. $105300
Oil and Lubrication Services
Cr. $105300
(108660 -3300=105300)
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Profit & Loss A/c
Dr. $450
Oil and lubrication services revenue
Cr. $450
_________________________________________________________________________
Royalty Exps. A/c
Dr. $23400
National Oil and Lube Center A/c.
Cr. $ 23400
(Royalty @ $ 10 per vehicle per 2340 vehicles)
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Frank Knight Capital A/c.

Dr. $ 4500
Bank Account
Cr. $ 4500
(Amount withdrawn by Frank Knight)
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Inventory Cost ( $8230-$5290 (stock)
Dr. $ 2940
Employee Cost
Dr. $34560
Utility Expenses
Dr. $ 1700
Miscellaneous Expenses
Dr $ 6600
Lease rent Expenses
Dr. $ 3000
( @ $1500 for June to July)
Profit & Loss A/c
Cr. $ 48800
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National Oil and lube Center Loan A/c
Dr. $ 2490
Bank A/c
Cr. $ 2490
(Installment @ $830 per month may to july)
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Account Receivable
Dr. $ 1520
( $340+$730+$450)
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Liabilities
Cr. $2450
($2100+$350)

2)
a) Capital ($ 50000-$4500)
=
$ 45500
b) Accumulated depreciation
=
$ 3750
c) Prepaid Assets
=
$ Nil
d) Cash balance
=
Nil
e) Accounts Receivable
=
$ 1520
f) Liabilities
=
$ 2450
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3)
a) Withdrawals
=
$4500
b) Cost of sales
Oil & Grease
$6320
Oil & Grease
$2940
Lease rental
$4500
Royalty
$23400
Employees Cost $34560
Utility Exps
$1700
Miscellaneous
$6600
=
$80020
C) Parking revenues
=
$3300
D) Lease Expenses
=
$27900
E) Total revenue
=
$109050
4)
a) August parking checks received in advance will be deposited and accounted in august only.
b) $340 receivable from overnight parkers may go into bad debts .
c) Family use of the Waltham centers use amounting to $ 450 has already been accounted and
amount is shown as receivable from Frank Knight.