Case: Hike Away $-$ Student CopyHike AwayHike Away sells outdoor sporting equipment. You have been working for the company since its inception a few years ago and have been promoted to be their accounting manager. They use the perpetual inventory system and use the weigted average method to determine value for the inventory.The opening balances for the month of September are as follows:Hike AwayBalance SheetAs at September $30,2023$AssetsLiabilitiesCash$$9,480$Accounts Payable$$10,500$Accounts Receivable$16,000$Bank Loan$18,000$Merchandise Inventory$15,000$Total Liabilities$$28,500$Equipment$160,000$Shareholders' EquityAccumulated Depreciation$-18,000$Common Shares$50,000$Retained Earnings$103,980$Total Assets$$182,480$Total Liabilities & Shareholders' Equity$$182,480$The inventory figure includes $300$ units purchased at $$50$ each$\mathrm{.}1500030050$The Chart of Accounts $($GL no$.)$ is shown below:Account DescriptionAccount #Account DescriptionAccount #ASSETSREVENUECash$101$Sales Revenue$400$Petty Cash$105$Sales Discounts$405$Accounts Receivable$110$Sales Returns and Allowances$410$Merchandise Inventory$120$Interest Revenue$420$Prepaid Insurance$125$EXPENSESEquipment$140$Cost of Goods Sold$500$Accumulated Depreciation$145$Employee Benefits Expense$510$LIABILITIESDepreciation Expense$515$Accounts Payable$200$Insurance Expense$520$Interest Payable$205$Interest Expense$525$CPP Payable$220$Office Supplies Expense$530$EI Payable$225$Rent Expense$535$Income Tax Payable$230$Salaries Expense$540$Salaries Payable$235$Bank Charges Expense$545$Unearned Revenue$240$Maintenance Expense$550$Bank Loan$245$Entertainment Expense$555$SHAREHOLDERS' EQUITYCommon Shares$300$Retained Earnings$305$Required:$1.)$ Record transactions in the general journal$2.)$ Post journal entries to the ledger accounts$3.)$ Using the journal entries from part $1,$ complete the inventory valuation page$4.)$ Complete the bank reconciliation and related journal entries$5.)$ Prepare the income statement, statement of retained earnings and balance sheet$6.)$ Calculate ratios and answer related questions

Answer rating: 100% (QA)

Hike Away Company Accounting Analysis Based on the information providedwe can analyze Hike Away Companys financial health using basic accounting princ... View the full answer