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Since January 1 , 2 0 2 0 , John and Mary Company provide sales and services for bike riders. It shows the following balances

Since January 1,2020, John and Mary Company provide sales and services for bike riders. It
shows the following balances where all have normal balances:
Cash $ 38500
Accounts Receivable $5200
Copyrights $6500
Land $12000
Taxes Payables $1500
Common Stocks 10000 shares $59400
Retained Earnings $6700
Wages Payable $350
Inventory 25 bikes $5000
Office Supplies $750
During January 2020, the following transactions occur:
January 1 Rented space for one year paid in advance, $6,000($500/month).
Purchase insurance for the business, $12,000 for 12 months
January 10 Purchase special Equipment on account for $3600 with$300 installation cost
with life of 6 years and salvage value of $600. Company uses straight line method.
January 13 Provide services to customers on account, $25,500. Also sold for $950 cash 3 bikes, costing
$600
January 17 Receive cash in advance from customers for services to be provided in the future, $9,700.
January 20 Paid off Wages Payable, and additional payment of salaries, $1,500.
January 22 Receive cash on accounts receivable, $3,000.
January 29 Pay cash for six month insurance for $4,000 starting February of next year.
The following information is available on January 31,2020.
a. Company lawyer believes it is probable that the company will be responsible for
environmental damages, however, amount can not be determined at this time.
b. Company purchased the nest door property for expansion for $100,000, receiving bank
mortgage. An appraiser value the building for $60000 and land $30000.
c. Rent insurance for the month of January have expired.
d. Supplies remaining at the end of January is $800.
e. By the end of January, $3,200 of services has been provided to customers who paid in
advance on January 17..
f. On January 31, the equipment was exchanged in a cash transaction with a new equipment,
the new equipment was $2,800
g. Unpaid salaries at the end of January are $4,400.
h. If earnings and cash available, pay $2000 dividends to stockholders.
i. It was determined that Addy, one of the customers, will not be able to pay his balance of
$350.
j. Purchased special supplies for $400 FOB Destination that arrived on February 10.
 
 
Required:
1- Record January 1st balances followed by recording the above transactions in an
Excel sheet using the Accounting Equation similar to what we practiced in class,
that includes end of period adjusting entries, if any
2- Prepare multi-step income statement as of January 31 similar to what we practiced
in class. Dont forget EPS data.
3- Prepare the Statement of Retained Earnings
4- Prepare a classified balance sheet (e.g. current assets and non-current) as of
January 31 similar to what we practiced in class.
5- List 2 financial ratios that seem to be satisfactory or not satisfactory. (use text box
for answering this question)
This problem will be graded for accuracy (90%) and presentation (10%

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