The Following Transactions Occurred During June for Campus Cycle Shop $$\begin{array}{l}\text {Cash 111 }\\\begin{array} { l | l r } \hline& \\&\end{array}\end{array}$$

question 21

Essay

The following transactions occurred during June for Campus Cycle Shop. Record the transactions below in the T accounts. Place the letter of the transaction next to the entry. Foot and calculate the ending balances of the T accounts where appropriate.
a. Tyler invested $6,500 in the bike service from his personal savings account.
b. Bought office equipment for cash, $900.
c. Performed bike service for a customer on account, $1,000.
d. Company cell phone bill received, but not paid, $80.
e. Collected $300 from customer in transaction c.
f. Tyler withdrew $100 for personal use. $$\begin{array}{l}\text {Cash 111 }\\\begin{array} { l | l r } \hline& \\&\end{array}\end{array}$$ $$\begin{array}{l}\text {Accounts Reœeivable 112 }\\\begin{array} { l | l r } \hline& \\&\end{array}\end{array}$$ $$\begin{array}{l}\text {Office Equipment 112 }\\\begin{array} { l | l r } \hline& \\&\end{array}\end{array}$$ $$\begin{array}{l}\text {Accounts Payable 211 }\\\begin{array} { l | l r } \hline& \\&\end{array}\end{array}$$ $$\begin{array}{l}\text {Tyler's Capital 311 }\\\begin{array} { l | l r } \hline& \\&\end{array}\end{array}$$ $$\begin{array}{l}\text {Tyler's Withdrawals 312 }\\\begin{array} { l | l r } \hline& \\&\end{array}\end{array}$$ $$\begin{array}{l}\text {Bike Fees 411 }\\\begin{array} { l | l r } \hline& \\&\end{array}\end{array}$$ $$\begin{array}{l}\text {Telephone Expense 512 }\\\begin{array} { l | l r } \hline& \\&\end{array}\end{array}$$

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Definitions:

Variable Overhead Rate

The ratio of variable overhead costs to activity drivers such as hours worked or units produced.

Actual Production

The actual quantity of goods or services produced over a specific period, often compared to planned or theoretical production levels.

Favorable Volume Variances

Differences between planned and actual production volumes that result in lower costs or higher profits.

Normal Capacity

The average level of operational output that a company can sustain with its current resources, under normal conditions over a certain period.