Prepare the financial statements for following Baker's Bikes. Baker's Bikes is a local bike repair, sales...
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Prepare the financial statements for following Baker's Bikes. Baker's Bikes is a local bike repair, sales and service shop specializing in road bikes. Baker's Bikes carns revenue through a.) service of bicycles b.) selling new bicycles. Assignment: Create journal entries, trial balance, close the accounts and prepare four financial statements. Conditions & Constraints: Under the following circumstances. Transactions occur only once (unless otherwise indicated). • The accounting period is from January 1, 2021 until December 31,2021 • Baker's bikes records cost-of-good sold under the FIFO method. • Assets unless otherwise indicated should be amortized under straight-line amortization. • All the types of bikes can be recorded as bikes. • Unless specified on account all transactions are in cash. Principles: • Payroll • Adjusting of Accounts • Closing the Accounts One Year of Financial Transactions, for the period : Date Activity 112 Tim Baker deposits S10,000 of his own capital to start the busines 114 Tim Baker purchases branding and advertising materials for 5500 Notes 1/17 Baker parchases a stand and tools with a eful fife of 20 years for S1,000 1/18 Baker purchases office oquipement inclufing a laptop for S1000 cash 21 21 Tim hires Sachin Patel, to run the sales floer and fin hikes. Sachin willwurk 30 hours per week and receive 25 Tim buyers ten bicycles on account from Scott for $500 cach on account termis 2/10n 30 26 Tim sells 2 bikes for SI100 cach 2/10 Tim collects performs services en account for Jacob for S75 21 Tim Baker buys three bicycles merchandise on account S1.50 em 210 30 2/14 Sells 3 31 Tim buys a one yeat business insurance policy for S100 per mah 31 Tim Baker sells his long-lived assots. 31 Tim sells two bicycles to a couple for S1000 cach for cash. 32 Tim performs 3 tune ups for $50 cach 34 Tim performs three tune ups for Ss0 cach 35 Sachin sells 3 bikes at S1100 each 3/10 Tim buys merchandise inventory from Giant Bikes of 5 bkes on account shipping terms destination for S500 cach crodit terms 2/12 n 20 320 Tim pays his bill to Giant Bikes 31 20 Tim pays his bill with Scott Bikes 330 Tim sells three bikes to Amold for Si000 cach. S2000 was paid in ca 4/1 41 Tim buys 10 bikes from his supplier for S300 cach 4/10 Tim purchases advenising space in a Sports & Bikes, a local magarine for 3/5 Sachin sells 3 bikes at SI100 cach. 3/10 Tim buys merchandise inventory from Giant Bikes of 5 bikes on account shipping termis destination for S500 cach, credit terms 2/12 n 20. 3/20 Tim pays his bill to Giant Bikes. 3/ 20 Tim pays his bill with Scon Bikes. 330 Tim sells three bikes to Amold for $1000 cach. S2000 was paid in cash. 4/1 4/1 Tim buys 10 bikes from his supplier for $300 cach. 4/10 Tim purchases advertising space in a Sports & Bikes, a local magarine for S100 one month on account starting S/1. 4/10 Thomas retums on of the bikes for a full refund. 4/20 A small marketing company is hired to help building a website and social modia advertising. The marketing company charges a total SI500, although S2000 is paid for future work on social media account although tenms are not settled. Tim purchases an air pump for S200 with 1000 3 of gas, meant to service 5,000 tires with a residual value of S20. Tim sells 1 bike for cash $2200. Sachin sells 2 hikes for S1S00 and S1600. 61 6/1 Tim forms a partnership with a another local bike shop Bob's Bikes to form Bob & Baker's Bikes with a 50 50 slip for the contribution of 30 bicycles. and $5,000 with no other bicycles. 6/1 Tim pay his bill with Sports & Bikes. 612 Bob & Baker's Bikes sells 3 bikes. 620 Merchandise inventory of 10 bikes ate purchased for S600 per bike on account, crodit terms 2/5 n 10. 7/1 71 Bob & Baker's Bikes sells the oquipment and tools purchased for $100 1 for 7/5 3 bikes are sold for S1000 cach 7/6 2 bikes are stolen. 81 Bob & Baker's Bikes sells 5 bikes for S1000. 8/1 Bob & Baker's Bikes performs 2 tume ups for S50 cach. 8/10 Tim purchases merchandise inventory of 10 bikes from Giant for $250 on account. 91 91 Bob & Baker's Bikes raised long-term debt of S5,000 9/10 Bob & Baker's Bikes sells 4 bikes for $1,000 cach. 10/1 10/1 Bob & Baker's Bikes buys shares 10 shares of ABC company for $1000. 102 Bob & Baker's Bikes determine to pay themselves a salary of S1,000 a month 103 Bob & Baker's Bikes performs 3 tune-ups for $50 cach. 106 Bob & Baker's Bikes sells 3 bikes for $2,000 cach. Bob & Baker's Bikes sells 5 their shares of ABC company for S400. Action Plan a.) Create a journal entries for all the above transactions. b.) Prepare a general ledger and trial balance for all above transactions c.) Prepare financial statements for all the above transactions. d.) Calculate the following ratios a. Current Ratio b. Profit Margin c. Return on Equity Prepare the financial statements for following Baker's Bikes. Baker's Bikes is a local bike repair, sales and service shop specializing in road bikes. Baker's Bikes carns revenue through a.) service of bicycles b.) selling new bicycles. Assignment: Create journal entries, trial balance, close the accounts and prepare four financial statements. Conditions & Constraints: Under the following circumstances. Transactions occur only once (unless otherwise indicated). • The accounting period is from January 1, 2021 until December 31,2021 • Baker's bikes records cost-of-good sold under the FIFO method. • Assets unless otherwise indicated should be amortized under straight-line amortization. • All the types of bikes can be recorded as bikes. • Unless specified on account all transactions are in cash. Principles: • Payroll • Adjusting of Accounts • Closing the Accounts One Year of Financial Transactions, for the period : Date Activity 112 Tim Baker deposits S10,000 of his own capital to start the busines 114 Tim Baker purchases branding and advertising materials for 5500 Notes 1/17 Baker parchases a stand and tools with a eful fife of 20 years for S1,000 1/18 Baker purchases office oquipement inclufing a laptop for S1000 cash 21 21 Tim hires Sachin Patel, to run the sales floer and fin hikes. Sachin willwurk 30 hours per week and receive 25 Tim buyers ten bicycles on account from Scott for $500 cach on account termis 2/10n 30 26 Tim sells 2 bikes for SI100 cach 2/10 Tim collects performs services en account for Jacob for S75 21 Tim Baker buys three bicycles merchandise on account S1.50 em 210 30 2/14 Sells 3 31 Tim buys a one yeat business insurance policy for S100 per mah 31 Tim Baker sells his long-lived assots. 31 Tim sells two bicycles to a couple for S1000 cach for cash. 32 Tim performs 3 tune ups for $50 cach 34 Tim performs three tune ups for Ss0 cach 35 Sachin sells 3 bikes at S1100 each 3/10 Tim buys merchandise inventory from Giant Bikes of 5 bkes on account shipping terms destination for S500 cach crodit terms 2/12 n 20 320 Tim pays his bill to Giant Bikes 31 20 Tim pays his bill with Scott Bikes 330 Tim sells three bikes to Amold for Si000 cach. S2000 was paid in ca 4/1 41 Tim buys 10 bikes from his supplier for S300 cach 4/10 Tim purchases advenising space in a Sports & Bikes, a local magarine for 3/5 Sachin sells 3 bikes at SI100 cach. 3/10 Tim buys merchandise inventory from Giant Bikes of 5 bikes on account shipping termis destination for S500 cach, credit terms 2/12 n 20. 3/20 Tim pays his bill to Giant Bikes. 3/ 20 Tim pays his bill with Scon Bikes. 330 Tim sells three bikes to Amold for $1000 cach. S2000 was paid in cash. 4/1 4/1 Tim buys 10 bikes from his supplier for $300 cach. 4/10 Tim purchases advertising space in a Sports & Bikes, a local magarine for S100 one month on account starting S/1. 4/10 Thomas retums on of the bikes for a full refund. 4/20 A small marketing company is hired to help building a website and social modia advertising. The marketing company charges a total SI500, although S2000 is paid for future work on social media account although tenms are not settled. Tim purchases an air pump for S200 with 1000 3 of gas, meant to service 5,000 tires with a residual value of S20. Tim sells 1 bike for cash $2200. Sachin sells 2 hikes for S1S00 and S1600. 61 6/1 Tim forms a partnership with a another local bike shop Bob's Bikes to form Bob & Baker's Bikes with a 50 50 slip for the contribution of 30 bicycles. and $5,000 with no other bicycles. 6/1 Tim pay his bill with Sports & Bikes. 612 Bob & Baker's Bikes sells 3 bikes. 620 Merchandise inventory of 10 bikes ate purchased for S600 per bike on account, crodit terms 2/5 n 10. 7/1 71 Bob & Baker's Bikes sells the oquipment and tools purchased for $100 1 for 7/5 3 bikes are sold for S1000 cach 7/6 2 bikes are stolen. 81 Bob & Baker's Bikes sells 5 bikes for S1000. 8/1 Bob & Baker's Bikes performs 2 tume ups for S50 cach. 8/10 Tim purchases merchandise inventory of 10 bikes from Giant for $250 on account. 91 91 Bob & Baker's Bikes raised long-term debt of S5,000 9/10 Bob & Baker's Bikes sells 4 bikes for $1,000 cach. 10/1 10/1 Bob & Baker's Bikes buys shares 10 shares of ABC company for $1000. 102 Bob & Baker's Bikes determine to pay themselves a salary of S1,000 a month 103 Bob & Baker's Bikes performs 3 tune-ups for $50 cach. 106 Bob & Baker's Bikes sells 3 bikes for $2,000 cach. Bob & Baker's Bikes sells 5 their shares of ABC company for S400. Action Plan a.) Create a journal entries for all the above transactions. b.) Prepare a general ledger and trial balance for all above transactions c.) Prepare financial statements for all the above transactions. d.) Calculate the following ratios a. Current Ratio b. Profit Margin c. Return on Equity
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Answer rating: 100% (QA)
Date Particulars Debit Credit 112 Cash account Capital account 10000 10000 114 Advertising expense Cash account 500 500 117 Equipment account Cash account 1000 1000 ... View the full answer
Related Book For
Managing Supply Chain and Operations An Integrative Approach
ISBN: 978-0132832403
1st edition
Authors: Thomas Foster, Scott E. Sampson, Cynthia Wallin, Scott W Webb
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