Maibrit's Bike's began operations in April 2017 and had the following transactions.
a) Owner invested $120,000 cash and a truck worth $36,000 in exchange for stock.
b) Paid $84,000 cash for 6 months' rent.
c) Purchased $300,000 of bicycle inventory on credit.
d) Sold bicycles for cash of $507,000. The cost of the bikes sold was $180,000.
e) Sold and invoiced bicycles to a client for $95,400. The cost of the bikes sold was $48,000.
f) Paid $90,000 cash for an advertising campaign in connection with Tour de France. The campaign will run over the next two of months.
g) Paid $24,000 in cash for supplies to have on hand for bike repairs.
h) Collected $60,000 from accounts receivable.
i) Paid for bikes purchased on credit in Transaction c above.
j) Paid cash dividends of $3,000.
k) Received $6,000 cash from a customer as a deposit for a custom bicycle to be built.
At the end of April, the following information is available:
i. At the end of April, $19,200 supplies remained on hand.
ii. Rent paid inTransaction b is for a lease that began on April 1.
iii. At the end of April, one-third of the advertising campaign in Transaction f was completed.
iv. The truck is expected to be used for five years (60 months).
v. The custom bicycle in Transaction k was built and delivered to the customer on April 30.
Required: Prepare journal entries for any accounting adjustments required for items i. through v.
Correct Answer:
Verified
a)
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q45: Organic Floral is an organic flower shop.
Q46: Green Garden Company made $192,000 in net
Q47: Craft Corner began operations in March with
Q48: The December 28, 2016 income statement of
Q49: Maibrit's Bike's began operations in April 2017
Q51: Record the following transactions for Mouser Pet
Q52: Prepare journal entries to record the following
Q53: You have been hired by Peters CAD,
Q54: In December 2017, Beth Gilligan opened dry-cleaning
Q55: Cabela's Incorporated has the following account balances
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents