Casa Garage Co. accepts the following forms of payment: Visa, MasterCard, the Casa Garage Co. credit card,
Question:
Casa Garage Co. accepts the following forms of payment: Visa, MasterCard, the Casa Garage Co. credit card, and debit. Casa is charged 3.5% for all bank credit card transactions. Casa charges 14.25% interest on bal- ances owing on the Casa Garage Co. credit card, and $0.50 per transaction for all debit card transactions. In October and November 2017, the following summary transactions occurred:
Oct. 15 Performed services totalling $15,000 for customers who used the Casa Garage Co. credit card for payment.
20 Performed services totalling $7,500 to customers who used Visa credit cards.
30 Performed services totalling $2,000 on account, terms, n/30.
31 Performed services totalling $5,000 for customers who used debit cards (100 transactions). Nov 15 Collected amounts owing from October 15 transactions.
Instructions
(a) Record the above transactions for Casa Garage Co.
(b) In addition to these transactions, Casa had rent expense of $4,000, supplies expense of $500, and salary expense of $5,000 for the months of October and November. Prepare a single-step income statement for Casa Garage Co. for the two months ended November 30.
Step by Step Answer:
Accounting Principles
ISBN: 978-1119048503
7th Canadian Edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak