After playing several seasons of professional football. David Beckam had saved enough money to start business, to be called Bent It Like Beckam. The transactions during March, while new business was being organized are listed below.

March $1$: David Beckam invested Rs$140,000$ cash in the business by making a deposit in a company in the name of new company.

March $2$: The new company purchased land and a building at a cost of Rs $120,000,$ of which Rs$72,000$ was regarded as applicable to land and Rs $48,000$ to the building. The transaction involved a cash payment of Rs $41,500$ and the issuance of note payable for the balance. The note is due in $5$ years. March $4$: Purchased $20$ new automobiles at Rs$8,600$ each from Citi sales company $.$Paid Rs$40,000$ cash; the balance in form of note payable to be paid in $4$ monthly installments of Rs$33,000$ each, beginning march $15.($interest expense is to be ignored$).$

March $7$: Sold an automobile at a cost to Robert Dinario father$-$in$-$law, who paid Rs$2,400$ in cash and agreed to pay the balance within $60$ days.

March $8$: One of the automobiles was found to be defective and was returned to Fleet sales company. The amount payable to this creditor was thereby reduced by $8,600.$ March $15$: Paid Rs$33,000$ to fleet sales company as the first monthly payment on notes payable created on March $4.($interest expense to be ignored$).$ March $20$: Purchased office equipment on credit total cost Rs$4,000$ due in $30$ days.

The account titles of company are as follows: Cash Accounts receivable Land Buildings Office equipment Automobiles Notes payable Accounts payable David Beckam capital Instructions: a$)$ Journalize the March transactions; $(8$ Marks$)$

b$)$ Mention the effect of march $15$th transaction upon the following terms:$1.$ Net income;$2.$ Assets;$3.$ Liabilities; and$4.$ Owners equity? $(2$ Marks$)$

Answer rating: 100% (QA)

Answer a Journalizing the March transactions March 1 Debit Cash 140000 Credit David Beckham Capital ... View the full answer