Prepare the financial statements for following Baker's Bikes. Baker's Bikes is a local bike repair, sales...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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
Expert Answer:
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
Posted Date:
Students also viewed these accounting questions
-
Prepare the financial statements for the three months ended July 31, 2013. Precision Computer Precision Computer Centre 185 North Escondido Blvd Edmonco AB TOG 1X9 210 Auty S. 2013.. NVOICE To the...
-
Following are the financial statements for the Chenhai Manufacturing Corporation for 2009 and 2010. The venture is in financial distress and hopes to turn around its financial performance in the near...
-
The financial statements for the Oros Riding Club follow. Required 1. Explain how the four statements for Oros Riding Club relate to each other. 2. Which statements are most closely associated with...
-
Solve each system. x + 4y = - 3x + 2y = 17 -9
-
In January 2003, the late Professor David Bradford told a New York Times reporter that a consumption tax discourages work effort. Shortly thereafter, he received the following e- mail: Since when is...
-
Redmond Corporation started operations on April 1, 2018. Seventeen transactions occurred during April. Financial statements are prepared at the end of the month. Requirements 1. Use Excel to record...
-
A prototype fan has a \(20-\mathrm{ft}\) diameter, an inlet pressure of \(14.40 \mathrm{psia}\), an inlet temperature of \(70^{\circ} \mathrm{F}\), and a speed of \(90 \mathrm{rpm}\). A...
-
On January 1, 2014, Hatch Co. borrowed $100,000 cash from First Bank by issuing a four-year, 6 percent note. The principal and interest are to be paid by making annual payments in the amount of...
-
The 18-year, $1,000 par value bonds of Waco Industries pay 7 percent interest annually. The market price of the bond is $895, and the market's required yield to maturity on a comparable-risk bond is...
-
Evaluate the following statements by providing a brief explanation or analysis. (a) The income gap ratio and the head count, as measures of poverty, may lead to very different uses of antipoverty...
-
Suppose f(x)=x2+4 and g(x)=2x+1. Find the value of f(-2)g(-2).
-
True Or False In assessing the litigiousness of American society, the question is not whether there has been an increase in tort filings but whether there has been an increase in litigation per...
-
True Or False (new) A plaintiff may recover from one or all joint tortfeasors as many times as they can.
-
What do each of the following coverages provide? a. medical payment b. comprehensive c. collision d. uninsured motorist e. underinsured motorist
-
True Or False Strict liability may be the reason that tort liability insurance expanded.
-
True Or False Joint tortfeasors can each be held jointly and severally liable if the harm can be apportioned.
-
3. Recommend a type of life insurance (including the dollar amount and length of the policy in years) for the following people. Be sure to EXPLAIN how you came up with the SSS amount. A) Sue is 26...
-
In the figure, two loudspeakers, separated by a distance of d1 = 2.63 m, are in phase. Assume the amplitudes of the sound from the speakers are approximately the same at the position of a listener,...
-
Queuing psychology identifies ways that service operations managers can improve waits by improving the perception of those customers who do wait. What are some of the fundamental points related to...
-
How is the N = 2 technique different from traditional acceptance sampling?
-
1. What type of inspection would be helpful in monitoring and ensuring software quality? 2. What type of inspection plan would you recommend?
-
The materials which exhibit the same elastic properties in all directions are known as: (a) Homogeneous (b) Isotropic (c) Isentropic (d) Inelastic
-
In a reaction steam turbine, steam expands: (a) In nozzle only (b) In moving blades only (c) Partly in nozzle partly in blades (d) None of the above
-
In impulse turbines, pressure on the two sides of the moving blades: (a) Increases (b) Decreases (c) Remains same (d) None of the above
Study smarter with the SolutionInn App