Cycle Path, Inc. went into business as a corporation in early 2017. For the first few...

 

   

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Cycle Path, Inc. went into business as a corporation in early 2017. For the first few years, the company provided bicycle rental and repair services only (ne merchandise). During 2020, the company began selling bicycles and related gear, and decided to use the FIFO inventory method. The other worksheets include the following: Sheet Name Beg TB I Cycle Path's trial balance on Jamuary 1, 2020. 2 Alist of events that occurred during 2020 3 An accounting equation grid for you to analyze the impacts of the events. Niote check totals w 42-46 Background Info Background Info Completion Required Events Grid Inventory Completion Roquired A workshoet to analyze the cost of inventory and the cost of goods sold. Engh row are pronided after each event te lit all ehe ieventury layers ar their enstr. A workshoet to prepare appropriate transaction and adjusting journal entries A workshoet to prepare the 2020 Adjusted Trial Balance. Worksheets to prepare the 2020 financial statements A worksheet to prepare the 2020 elosing joumal entries. Completion Required Completion Required Completion Required Completion Roquired JE Ad TB Fin St Closing Instructions Beg TB Events Grid Inventory J-Es Adj TB Fin St Shown below is the Post-Closing Trial Balance for Cycle Path at the end of 2019. Cycle Path, Inc. Post-Closing Trial Balance as of December 31, 2019 Debit Aссоunt Cash Credit 12,410 Accounts receivable 2,380 Supplies Prepaid rent Inventory 153 680 Land 3,400 Accounts payable Salaries payable 884 Unearmed revenue 765 Common stock 6,800 Retained earnings 10,574 Dividends declared Service revenue Product sales Cost of goods sold Supplies expense Salaries expense Rent expense Utilities expense Advertising expense Other operating expenses ТОTALS 19,023 19,023 Instructions Beg TB Events Grid Inventory J-E Following are the events for Cycle Path during 2020. a) Jan. 6, 2020 - Cycle Path paid the salaries payable from 2019. b) Jan. 14, 2020 - The company acquired an additional 542.500 cash from the issae of common stock. ) Jam. 17, 2020 - The company paid $765 cash for supplies to be used by the business. d) Jan. 21. 2020 - Cycle Path purchased 35 bicycles and related gear for later sale at a cost of St6,142. The bicycles and related gear were purchased on accoune with the terms t/10, n/30. ) Jan 29, 2020 - Cycle Path decided to pay 54200 of its accounts payable halance from event (d) before the discount period expired, so Cycle Path first applied the discount to the 54,200 amount so it could reduce its accounts payable balance (note: the actual payment is described in event () below). After applying this discount, Cycle Path's inventory cost was $460 for ecach item. Jam 29, 2020 - Cycle Path paid cash to settle parta of its accounts payable halance as deseribed in event (e) Feb. 12, 2020 - The company sold 24 bicycles and related gear for a total price of S15,300. Sales of $11,050 were on account, while S4,250 were cash sales. Record revenue. h) Feb. 12, 2020 - The cost to Cycle Path of cach product sold in event (g) was $46o Feb. 17. 2020 - The company paid the workers a total of $7,140 in salaries. Feb. 28, 2020 - The company provided S30,600 of bicycle rental and repair services. The services were billed to the customers. Mar. 1, 2020 - Cycle Path rented a basiness van, paying 54,080 in advance for a one year rental. Mar. 3, 2020 - Paid cash to settle additional accounts payable in the amount of S3.213, The payment was made after the discount period expired. m) Mar. 11, 2020 - Collected $32,300 of accounts reccivable Apr. 9. 2020 - Cycle Path performed SI1,900 worth of bicycle rental and repair services for a local college: S10.200 was on account and S1.700 was for cash. May. 1, 2020 - Paid S6,I20 for one year's rent on office space in advance. May. K, 2020 - Cycle Path purchased, and paid cash, for 8 bicycles and related gear for later sale at a cont of S474 cach. Q May. 17. 2020- The company paid accounts payable of S1.224, but not within the discount period (the company uses the gross method). Jun. 1. 2020 - Cycle Path rented Jun, 5, 2020 - Cycle Path purchased, and paid cash, for 12 bicyces and related gear for later sale at a cost of S480 each. la larger building paid $5.610 for 12 months' rem in advance. Jun. 12. 2020 - Cyck Path purchased 15 bicycles and related gear for later sale at a cost of S48s6 cach. The 1) purchase was on account. Jun. 23, 2020 - The company sold 32 bicycles and related gear for a total price of $23,800. Sales of $17,000 were on account, while S6,800 were cash sales. Record revenue. Jun. 23, 2020 - Record the cost of goods sold related to the sale from event (u) using the perpetual FIFO method. V) w) Jul. 1, 2020 - Made a full refund to a dissatisfied customer who retuned a bicycle. The sale had been a cash sale for $935 with a cost of S480. Rocord the revene part of the event. Jul. 1, 2020 - Made a full refund to a dissatisfied customer who retumed a bicycle. The sale had been a cash sale for $935 with a cost of S480. Rocord the cost part of the event. y Jul. 15, 2020 - Paid employees a total of S9,350 cash for salaries employees carned during the current period. Aug. 24, 2020 - Provided $27,200 of bicycle rental and repair services during the year. The services were hilled to the eustomers. aa) Sep. 30, 2020 - Recognited S680 of service revenue catned during the first nine months of the year, it had been collected in the prior year. bb) Oct. 1, 2020 - Sold additional bicycle rental and repair services worth S340 for one year's service, starting immediately. The customers paid cush for the full amount. ec) Nov. 13, 2020 - Collected $4),350 of accounts receivable. ) Nov, 20, 2020 - Paid an additional S4,675 to settle sose accounts payable, the payment was made after the discount period expired. ee) Dec. 27, 2020 - Paid 52,380 of advertising expense during the year Dec. 28, 2020 - Paid $3,353 of utilities expense for the year. Dec. 28, 2020 - Paid S10,600 of other operating expense for the year, hh) Dec. 29, 2020 - Paid a dividend of S10,200 to the sharcholders. Dec. 31, 2020 - There was $537 of supplices on hand at the end of the year. Dec. 31, 2020 - Recognized the expired rent from the prior year, van fevent (k), office space [event (o)), and the building (event r)) for the year. 2) kk) Dec. 31, 2020 - Recognized revenue for the current year earned from event (bb). Dee. 31, 2020- Accrued salaries at December 31 were S1,020. Il) Instructions Beg TB Events Grid Inventory J-Es Adj TB Use the worksbeet below to prepare the Adjusted Trial Balance for Cycle Path. Cycle Path, Inc. Adjusted Trial Balance as of December 31, 2020 Ассоunt Debit Credit Cash Accounts receivable Supplies Prepaid rent Inventory Land Accounts payable Salaries payable Unearned revenue Common stock Retained earnings Dividends declared Service revenue Product sales Cost of goods sold Supplies expense Salaries expense Rent expense Utilities expense Advertising expense Other operating expenses TOTALS Instructions Beg TB Events Grid Inventory J-Es Adj TB Fin St Clos Use the worksheets below to prepare the 2020 financial statements for Cycle Path. Cycle Path, Inc. Income Statement For the Year Ended December 31, 2020 Cycle Path, Inc. Balance Sheet As of December 31. 2020 Service revenue Cash Product sales, net Cost of Goods Gross Margin Supplies expense Salaries expense Rent expense Utilities expens Advertising expnse Other operating expenses Net Income Accounts receivable Supplies Prepaid rent Inventory Land TOTAL ASSETS Accounts payable Salaries payable Unearned revenue Subtotal Liabilities Retained carninps Cycle Path, Inc. Statement of Changes in Stockholders' Equity For the Year Ended December 31, 2020 Common stock Subtotal Equity TOTAL LIABILITIES & EQUITY Beginning common stock Plus: Common stock issued Ending Commn Stock Beginning retained camings Cycle Path, Inc. Statement of Cash Flows For the Year Ended December 31. 2020 Cash lows from operating activities Cash receipts from customers Cash payments for expenses Net cash flow from operating activities Plus: Net Income Less: Dividends Ending Retained Earnings TOTAL STOCKHOLDERS' EQUITY Net cash flow from investing activities Cash flows from financing activities Cash receipts from stock issued Cash payments for dividends Net cash flow from financing activities Net increase in cash Ples: beginning cash balance Ending Cash Balance Instructions Beg TB Events Grid Inventory J-Es Adj TB Fin St Closing Une the worksbet below to prepare the appropriate closing journal enties for Cycle Path. For all journal entries, you must only use account names from the Chart of Accounts in cells 12 thru 125, and you must only use Basic Accounting Equation Impact codes from the list in cells K2 thru K7. a) Close revenuc accounts. Basic Acet Chart of Accounts E Impacts 100 Cash A Assets up Basie Acect Eg Impacts Date Accuant Names Debits Credits 110 Acconts Receivable A. Assets down 120 Prepaid rent 130 Supplies (on hand) 140 Inventory 150 Equipment 121/20 Liabilities up L Liabilities down L+ SE b) Close esprase aceounts. SE Equity down Basic Acct Eg Impacts 155 Accum. Depree. Equip.) Date Account Names Debits Credits 170 Land 210 Accounts Payable 220 Salaries Payable 240 Uncamed Revena 250 Netes Payale 10 Comon Shock 350 Retained Eamings 410 Dividends Declared 510 Service Revense 12/31/20 d) Close dividends account. Basic Act Fig Impact Date Account Names Debits Credits 520 Product Sales 600 Cost of Goods Sold 610 Supplies Expense 640 Salaries Expense 650 Rent Expense 660 Uulities expense 670 Advertising expense 690 Other Operating Expenaes 1231/20 Cycle Path, Inc. went into business as a corporation in early 2017. For the first few years, the company provided bicycle rental and repair services only (ne merchandise). During 2020, the company began selling bicycles and related gear, and decided to use the FIFO inventory method. The other worksheets include the following: Sheet Name Beg TB I Cycle Path's trial balance on Jamuary 1, 2020. 2 Alist of events that occurred during 2020 3 An accounting equation grid for you to analyze the impacts of the events. Niote check totals w 42-46 Background Info Background Info Completion Required Events Grid Inventory Completion Roquired A workshoet to analyze the cost of inventory and the cost of goods sold. Engh row are pronided after each event te lit all ehe ieventury layers ar their enstr. A workshoet to prepare appropriate transaction and adjusting journal entries A workshoet to prepare the 2020 Adjusted Trial Balance. Worksheets to prepare the 2020 financial statements A worksheet to prepare the 2020 elosing joumal entries. Completion Required Completion Required Completion Required Completion Roquired JE Ad TB Fin St Closing Instructions Beg TB Events Grid Inventory J-Es Adj TB Fin St Shown below is the Post-Closing Trial Balance for Cycle Path at the end of 2019. Cycle Path, Inc. Post-Closing Trial Balance as of December 31, 2019 Debit Aссоunt Cash Credit 12,410 Accounts receivable 2,380 Supplies Prepaid rent Inventory 153 680 Land 3,400 Accounts payable Salaries payable 884 Unearmed revenue 765 Common stock 6,800 Retained earnings 10,574 Dividends declared Service revenue Product sales Cost of goods sold Supplies expense Salaries expense Rent expense Utilities expense Advertising expense Other operating expenses ТОTALS 19,023 19,023 Instructions Beg TB Events Grid Inventory J-E Following are the events for Cycle Path during 2020. a) Jan. 6, 2020 - Cycle Path paid the salaries payable from 2019. b) Jan. 14, 2020 - The company acquired an additional 542.500 cash from the issae of common stock. ) Jam. 17, 2020 - The company paid $765 cash for supplies to be used by the business. d) Jan. 21. 2020 - Cycle Path purchased 35 bicycles and related gear for later sale at a cost of St6,142. The bicycles and related gear were purchased on accoune with the terms t/10, n/30. ) Jan 29, 2020 - Cycle Path decided to pay 54200 of its accounts payable halance from event (d) before the discount period expired, so Cycle Path first applied the discount to the 54,200 amount so it could reduce its accounts payable balance (note: the actual payment is described in event () below). After applying this discount, Cycle Path's inventory cost was $460 for ecach item. Jam 29, 2020 - Cycle Path paid cash to settle parta of its accounts payable halance as deseribed in event (e) Feb. 12, 2020 - The company sold 24 bicycles and related gear for a total price of S15,300. Sales of $11,050 were on account, while S4,250 were cash sales. Record revenue. h) Feb. 12, 2020 - The cost to Cycle Path of cach product sold in event (g) was $46o Feb. 17. 2020 - The company paid the workers a total of $7,140 in salaries. Feb. 28, 2020 - The company provided S30,600 of bicycle rental and repair services. The services were billed to the customers. Mar. 1, 2020 - Cycle Path rented a basiness van, paying 54,080 in advance for a one year rental. Mar. 3, 2020 - Paid cash to settle additional accounts payable in the amount of S3.213, The payment was made after the discount period expired. m) Mar. 11, 2020 - Collected $32,300 of accounts reccivable Apr. 9. 2020 - Cycle Path performed SI1,900 worth of bicycle rental and repair services for a local college: S10.200 was on account and S1.700 was for cash. May. 1, 2020 - Paid S6,I20 for one year's rent on office space in advance. May. K, 2020 - Cycle Path purchased, and paid cash, for 8 bicycles and related gear for later sale at a cont of S474 cach. Q May. 17. 2020- The company paid accounts payable of S1.224, but not within the discount period (the company uses the gross method). Jun. 1. 2020 - Cycle Path rented Jun, 5, 2020 - Cycle Path purchased, and paid cash, for 12 bicyces and related gear for later sale at a cost of S480 each. la larger building paid $5.610 for 12 months' rem in advance. Jun. 12. 2020 - Cyck Path purchased 15 bicycles and related gear for later sale at a cost of S48s6 cach. The 1) purchase was on account. Jun. 23, 2020 - The company sold 32 bicycles and related gear for a total price of $23,800. Sales of $17,000 were on account, while S6,800 were cash sales. Record revenue. Jun. 23, 2020 - Record the cost of goods sold related to the sale from event (u) using the perpetual FIFO method. V) w) Jul. 1, 2020 - Made a full refund to a dissatisfied customer who retuned a bicycle. The sale had been a cash sale for $935 with a cost of S480. Rocord the revene part of the event. Jul. 1, 2020 - Made a full refund to a dissatisfied customer who retumed a bicycle. The sale had been a cash sale for $935 with a cost of S480. Rocord the cost part of the event. y Jul. 15, 2020 - Paid employees a total of S9,350 cash for salaries employees carned during the current period. Aug. 24, 2020 - Provided $27,200 of bicycle rental and repair services during the year. The services were hilled to the eustomers. aa) Sep. 30, 2020 - Recognited S680 of service revenue catned during the first nine months of the year, it had been collected in the prior year. bb) Oct. 1, 2020 - Sold additional bicycle rental and repair services worth S340 for one year's service, starting immediately. The customers paid cush for the full amount. ec) Nov. 13, 2020 - Collected $4),350 of accounts receivable. ) Nov, 20, 2020 - Paid an additional S4,675 to settle sose accounts payable, the payment was made after the discount period expired. ee) Dec. 27, 2020 - Paid 52,380 of advertising expense during the year Dec. 28, 2020 - Paid $3,353 of utilities expense for the year. Dec. 28, 2020 - Paid S10,600 of other operating expense for the year, hh) Dec. 29, 2020 - Paid a dividend of S10,200 to the sharcholders. Dec. 31, 2020 - There was $537 of supplices on hand at the end of the year. Dec. 31, 2020 - Recognized the expired rent from the prior year, van fevent (k), office space [event (o)), and the building (event r)) for the year. 2) kk) Dec. 31, 2020 - Recognized revenue for the current year earned from event (bb). Dee. 31, 2020- Accrued salaries at December 31 were S1,020. Il) Instructions Beg TB Events Grid Inventory J-Es Adj TB Use the worksbeet below to prepare the Adjusted Trial Balance for Cycle Path. Cycle Path, Inc. Adjusted Trial Balance as of December 31, 2020 Ассоunt Debit Credit Cash Accounts receivable Supplies Prepaid rent Inventory Land Accounts payable Salaries payable Unearned revenue Common stock Retained earnings Dividends declared Service revenue Product sales Cost of goods sold Supplies expense Salaries expense Rent expense Utilities expense Advertising expense Other operating expenses TOTALS Instructions Beg TB Events Grid Inventory J-Es Adj TB Fin St Clos Use the worksheets below to prepare the 2020 financial statements for Cycle Path. Cycle Path, Inc. Income Statement For the Year Ended December 31, 2020 Cycle Path, Inc. Balance Sheet As of December 31. 2020 Service revenue Cash Product sales, net Cost of Goods Gross Margin Supplies expense Salaries expense Rent expense Utilities expens Advertising expnse Other operating expenses Net Income Accounts receivable Supplies Prepaid rent Inventory Land TOTAL ASSETS Accounts payable Salaries payable Unearned revenue Subtotal Liabilities Retained carninps Cycle Path, Inc. Statement of Changes in Stockholders' Equity For the Year Ended December 31, 2020 Common stock Subtotal Equity TOTAL LIABILITIES & EQUITY Beginning common stock Plus: Common stock issued Ending Commn Stock Beginning retained camings Cycle Path, Inc. Statement of Cash Flows For the Year Ended December 31. 2020 Cash lows from operating activities Cash receipts from customers Cash payments for expenses Net cash flow from operating activities Plus: Net Income Less: Dividends Ending Retained Earnings TOTAL STOCKHOLDERS' EQUITY Net cash flow from investing activities Cash flows from financing activities Cash receipts from stock issued Cash payments for dividends Net cash flow from financing activities Net increase in cash Ples: beginning cash balance Ending Cash Balance Instructions Beg TB Events Grid Inventory J-Es Adj TB Fin St Closing Une the worksbet below to prepare the appropriate closing journal enties for Cycle Path. For all journal entries, you must only use account names from the Chart of Accounts in cells 12 thru 125, and you must only use Basic Accounting Equation Impact codes from the list in cells K2 thru K7. a) Close revenuc accounts. Basic Acet Chart of Accounts E Impacts 100 Cash A Assets up Basie Acect Eg Impacts Date Accuant Names Debits Credits 110 Acconts Receivable A. Assets down 120 Prepaid rent 130 Supplies (on hand) 140 Inventory 150 Equipment 121/20 Liabilities up L Liabilities down L+ SE b) Close esprase aceounts. SE Equity down Basic Acct Eg Impacts 155 Accum. Depree. Equip.) Date Account Names Debits Credits 170 Land 210 Accounts Payable 220 Salaries Payable 240 Uncamed Revena 250 Netes Payale 10 Comon Shock 350 Retained Eamings 410 Dividends Declared 510 Service Revense 12/31/20 d) Close dividends account. Basic Act Fig Impact Date Account Names Debits Credits 520 Product Sales 600 Cost of Goods Sold 610 Supplies Expense 640 Salaries Expense 650 Rent Expense 660 Uulities expense 670 Advertising expense 690 Other Operating Expenaes 1231/20

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Cycle Path Journal entries Basic Acct Eq Impact Account Names Salaries Payable No Date ... View the full answer