1. 2. Billy Bob's Bikes Transactions Nov. 1: Billy Bob paid in advance for a 4-month insurance policy, which will begin today. He paid $3,856 cash for the policy. rest years (1/16 of the Nov. 1: Billy Bob purchased a building for $967,260 using $127,260 cash and then borrowing the principal will be paid off at the end of each year). The loan carries an interest rate of 7.72%. Interest accrued will be paid off at the end of every year. The building has an expected life of 35 years, a salvage value of $217,980 and will be depreciated using the straight-line method. 3. Nov. 2: Billy Bob hires Biker Betty for promotional purposes. He estimates her salary to be $12/hour. She will probably work 32 hours this month. 4. 5. 6. 7. 8. 9. Nov. 3: Billy Bob purchased 47 bikes from Paul's Choppers. Each bike cost $3,850 and the credit terms are 2/10, n/30. (Note: Bikes are considered Inventory) COUNS Payable cred Inventory Deb it. Nov. 3: Paul's Choppers paid FedEx $9,871 cash to ship the bikes to Billy Bob. No transaction Nov. 5: Billy Bob sold 28 bikes to Bikes R' Us for $8,800 each with credit terms of 3/15, n/30. The total cost of the bikes was figured out to be $105,950. Nov. 5: Billy Bob paid UPS $5,638 cash to ship the bikes to Bikes R' Us. Nov. 7: Billy Bob returned 2 of the bikes he purchased from Paul's Choppers. Nov. 7: Paul's Choppers paid FedEx $324 cash to have the returned bikes shipped back to him. 10. Nov. 8: Stockholder's invest $234,567 in exchange for Billy Bob's Bikes common stock. 11. Nov. 9: Bikes R' Us returned 3 of the bikes they purchased from Billy Bob. The cost of the bikes to Billy Bob was figured out to be $11,550. 12. Nov. 9: Bikes R' Us paid FedEx $421 cash to have the bikes returned. 13. Nov. 11: Billy Bob paid off the balance due from Paul's Choppers. 14. Nov. 12: Billy Bob purchased 36 more bikes from Paul's Choppers. Each bike cost $3,875 and the credit terms are 1/20, n/60. 15. Nov. 12: Billy Bob paid UPS $6,999 cash to ship the bikes he bought from Paul's Choppers. 16. Nov. 14: Bikes R' Us paid his balance off for the bikes he purchased. 17. Nov. 15: Billy Bob sold 51 bikes to Biker's Bargains for $8,700 each with credit terms of 2/10 EOM, n/75. The cost of the bikes was determined to be $200,949. 18. Nov. 15: Billy Bob paid FedEx $11,111 to have the bikes shipped to them.