Creating T-accounts:
John started his bike dealership, a sole proprietorship, on April 1, 2004, selling new and used bikes. The gross profit earned on new bike sales is 40%. John used $40,000 of his personal funds to start the business.
• On April 1, the business buys $30,000 worth of new bikes from his supplier with cash.
• On April 30th, customer brings in used bikes and business buys them for $7,500.
• On June 30th, new bikes are sold for $30,000. Half of these sales are on account.
• On June 30th, the business sells all the used bikes for $15,000 cash.
Record the above transactions into T-accounts for John. For recording the answers, use the following Template.
Attachment:- Creating T-accounts.rar