Chapter 2 Mastery Problem The T –
Hassan Rahim won a concession to rent bicycles in the local park during the summer. During the month of June, Hassan completed the following transactions for his bicycle rental business:

Chart of Accounts

Cash
Hassan Rahim Capital
Accounts Receivable
Hassan Rahim, Withdrawals
Supplies
Rental Income
Shed
Wages Expense
Bicycles
Maintenance Expense
Accounts Payable
Repair Expense

Concession Fee Expense

June
2
Began business by placing $7,200 in a business checking account.

3
Purchased supplies on account, $150

4
Purchased 10 Bicycles for $2,500, paying $1,200 down and agreeing to pay the rest in thirty days.

5
Purchased for cash a small shed to hold the bicycles and to use for other operations, $2,900

6
Paid cash for shipping and installation costs (considered as an addition to the cost of the shed) to place the shed at the park entrance, $400.

8
Received cash of $470 for rentals during the first week of operation.

13
Hired a part-time assistant to help out on weekends at $7.50 per hour

14
Paid a maintenance person to clean the grounds, $75.

15
Received cash, $500, for rentals during the second week of operation.

16
Paid the assistant for a weekend’s work, $150.

20
Paid for the supplies purchased on June 3, $150.

21
Paid repair bill on bicycles, $55.

22
Received cash for rentals during the third week of operation, $550.

23
Paid the assistant for a weekend’s work, $150.

26
Billed a company for bicycle rentals for an employee outing, $110

27
Paid the fee for June to the Park District for the right to the bicycle concession, $100.

28
Received cash for rentals during the week, $410.

29
Paid the assistant for a weekend’s work, $150.

30
Transferred $500 to personal checking account.