ACCOUNT 244 ASSIGNMENT (30 Points) for their business called details related to all Part 1: You have been hired by your friends Ben and Elon to help them with the accounting E Electric Bikes, Inc.". They do not keep the best accounting records but do write down business transactions. You feel that with your accounting experience you will be able to record all of the transactions and provide them with a set of financial statements that they can use to bring to the sources of revenue: one is buying and selling electric bikes; the second is repairing and performing routine maintenance on bikes. They work on all bikes that customers might bring to them. Below are the transactions bank. BE has two for the first two months that BE Electric Bikes is in business. OCTOBER 2017 TRANSACTIONS (FIRST MONTH In 1 Ben and Elon both invested $50,000 cash into the business (total amount invested was $100,000) Stock. When BE exchange for their investment they both received 1,000 shares of $35 par value Common Electric Bikes was establsied the company charter had 4,000 shares of common stock auth BE decided a building was needed for the business. To secured a loan with the local bank for $48,000 cash. The terms of the loan are that $2,400 in principal be paid back each month in additiont 2 make sure that the business had enough cash they nanci 3 The perfect building was found. The building was located on a piece of property ("land"). They purchased the building and land by paying cash in the amount of $100,000. The building was valued at $80,000 and the land was valued at $20,000 4 Rented a small storage space off-premises to keep the extra bike inventory. The total cost of the storage space was $150. Cash was paid 5) Performed repair services for various customers in the amount of S2 ,00025% of the customers paid in cash. The remaining customers received bills Found a vendor of electric bikes that they wanted to work with (BE would purchase the bikes and then resell to customers). The initial purchase was for ten bikes. Each bicycle was purchased for $1,000. The vendor trusted them and gave them terms so no payment was made at this tim 7 Purchased a twelve-month insurance policy that covers the period of October 1 of the current year to 8 | Sold one electric bike to a customer for $1,800 plus 5% sales tax. The customer paid in cash for the 9 Sold two bikes to a customer in Canada. The total amount of the sales was $3,000. As the sale was out of 10 Incurred expenses for October 2017 advertising. The total amount paid was $800. The amount was The total amount paid was $2,400 cash. September 30 of the next purchase. NOTE: The sales tax is collected by BE, however, this is money that is owed to the government. state/country no sales tax was charged. The customers paid BE with cash (U.S. dollars year. immediately paid (in full) with cash. Performed $1,000 worth of bike repairs for customers. BE mailed out the invoices to the customers with the expectation that the customers would pay in the future 12 Purchased $400 of office supplies for the month of October. All supplies will be used by the end of October. The purchase was made on BE's company credit card. 13 Paid 14 16 17 d the telephone bill for the month of October with cash. The telephone bill was $350 Paid in full (with cash) the amount that was due on the electric bikes All the customers from #11 paid (with cash) the outstanding balances that they had with BE. BE employees were paid (with cash) for work they performed from October 1 to October 15. The total amount paid in wages was $1,500. purchased in #6 abo Received a bill for the electricity for the month of October. The total bill was $400
