Billy Bob's Bikes Transactions 1. March 1: Stockholder's invest $777,777 into the company in exchange for Billy Bob's Bikes common stock. 2. March 1: Billy Bob paid in advance for a 6-month insurance policy, which will begin today. He. 3. March 1: Billy Bob purchased some land and a building for a total of $1,197,183 ushg $477,183 paid $7,074 cash for the policy. cash and then borrowing the rest from the bank. Based on the total purchase price of $1,197,183, the land was $276,543 and the building was the remainder. The loan from the bank will be paid off over the next 16 years (1/16 of the principal will be paid off at the end of each year). The loan carries an interest rate of 9.22%. Interest accrued will be paid off at the end of every year. The building has an expected life of 40 years and will be depreciated using the straight-line method. 4. March 2: Billy Bob purchased 15 bikes from Biker's Bargains. Each bike cost $2,960 and the credit terms are 4/15,n/30. (Note: Bikes are considered Inventory) INventory 44,000 ACCC 5. March 2: Billy Bob paid FedEx $1,849 cash to ship the bikes he bought from Biker's Bargains. 6. March 4: Billy Bob purchased \$2,751 worth of supplies from Oliver's Oflice Supplies paying cash. 7. March 5: Billy Bob sold 9 bikes to Carl's Cars for $7.950 each with credit terms of 2/10,n30. The total cost of the bikes was figured out to be $27.747. AcCOUNtS hechevalole 8. March 5: Carl's Cars paid DHL \$1,107 cash to ship the bikes he just bought. 9. March 7: Billy Bob hires Biker Betty for promotional purposes. He estimates her salary to be \$10/hour. She will probably work 10 hours this month. 10. March 10: Billy Bob paid off the balance due from Biker's Bargains. 11. March 11: Carl's Cars paid his balance off for the bikes he purchased. 12. March 12: Billy Bob's pay period ends and he now owes his employees $2,944 in salaries. These salaries will be paid on March 17th. 13. March 14: Billy Bob purchased 17 more bikes from Biker's Bargains. Each bike cost $3,050 and the credit terms are 4/10EOM,n/50. 14. March 14: Billy Bob paid UPS $2,091 cash to ship the bikes he bought from Biker's Bargains. 15. March 15: Billy Bob sold 12 bikes to Robbie Knievel for $9,150 each with credit terms of 3/10. n/30. The cost of the bikes was determined to be $37,536. 16. March 15: Billy Bob paid FedEx $1,489 to ship the bikes to Robbie Knievel. 17. March 16: Billy Bob bought a Bike Making Machine for $348,304 using $48,304 cash and then borrowing the rest from the bank. The loan will be paid off over the next 10 years (1/10 of the principal will be paid at the end of each year). The loan carries an interest rate of 8.68 percent. Interest accrued will be paid off at the end of every year. The Bike Making Machine has an expected life of 5.5 years, salvage value of $55,000, and will be depreciated using the straight-line method. 18. March 17: Billy Bob paid his employees the $2,944 in salaries owed. 19. March 18: Billy Bob returned 2 of the bikes he bought from Biker's Bargains. They credited $6,100 to his account. 20. March 20: Billy Bob's Bikes paid cash dividends of $7,777. 21. March 22: Robbie Knievel returned two of the bikes because parts were falling off them. The cost of the bikes to Billy Bob was figured out to be $6,346. 22. March 24: Billy Bob purchased 6 bikes from Bikes R' Us. Each bike cost $2,833 and the credit terms are 1/10EOM,n/60. 23. March 24: Billy Bob paid FedEx $738 to have the bikes shipped to him. 24. March 26: Billy Bob paid a utilities bill in the amount of $3,247. 25. March 27: Billy Bob sells 5 bikes to Biker Chick's Chop Shop for $9,111 each with credit terms of 3/10,n/30. The cost of the bikes was determined to be $15,750. 26. March 27: Biker Chick's Chop Shop paid FedEx $615 to ship the bikes they just bought. 27. March 29: Billy Bob paid off the balance due from Biker's Bargains. 28. March 30: Robbie Knievel paid his balance off for the bikes he purchased. Billy Bob's Bikes Transactions 1. March 1: Stockholder's invest $777,777 into the company in exchange for Billy Bob's Bikes common stock. 2. March 1: Billy Bob paid in advance for a 6-month insurance policy, which will begin today. He. 3. March 1: Billy Bob purchased some land and a building for a total of $1,197,183 ushg $477,183 paid $7,074 cash for the policy. cash and then borrowing the rest from the bank. Based on the total purchase price of $1,197,183, the land was $276,543 and the building was the remainder. The loan from the bank will be paid off over the next 16 years (1/16 of the principal will be paid off at the end of each year). The loan carries an interest rate of 9.22%. Interest accrued will be paid off at the end of every year. The building has an expected life of 40 years and will be depreciated using the straight-line method. 4. March 2: Billy Bob purchased 15 bikes from Biker's Bargains. Each bike cost $2,960 and the credit terms are 4/15,n/30. (Note: Bikes are considered Inventory) INventory 44,000 ACCC 5. March 2: Billy Bob paid FedEx $1,849 cash to ship the bikes he bought from Biker's Bargains. 6. March 4: Billy Bob purchased \$2,751 worth of supplies from Oliver's Oflice Supplies paying cash. 7. March 5: Billy Bob sold 9 bikes to Carl's Cars for $7.950 each with credit terms of 2/10,n30. The total cost of the bikes was figured out to be $27.747. AcCOUNtS hechevalole 8. March 5: Carl's Cars paid DHL \$1,107 cash to ship the bikes he just bought. 9. March 7: Billy Bob hires Biker Betty for promotional purposes. He estimates her salary to be \$10/hour. She will probably work 10 hours this month. 10. March 10: Billy Bob paid off the balance due from Biker's Bargains. 11. March 11: Carl's Cars paid his balance off for the bikes he purchased. 12. March 12: Billy Bob's pay period ends and he now owes his employees $2,944 in salaries. These salaries will be paid on March 17th. 13. March 14: Billy Bob purchased 17 more bikes from Biker's Bargains. Each bike cost $3,050 and the credit terms are 4/10EOM,n/50. 14. March 14: Billy Bob paid UPS $2,091 cash to ship the bikes he bought from Biker's Bargains. 15. March 15: Billy Bob sold 12 bikes to Robbie Knievel for $9,150 each with credit terms of 3/10. n/30. The cost of the bikes was determined to be $37,536. 16. March 15: Billy Bob paid FedEx $1,489 to ship the bikes to Robbie Knievel. 17. March 16: Billy Bob bought a Bike Making Machine for $348,304 using $48,304 cash and then borrowing the rest from the bank. The loan will be paid off over the next 10 years (1/10 of the principal will be paid at the end of each year). The loan carries an interest rate of 8.68 percent. Interest accrued will be paid off at the end of every year. The Bike Making Machine has an expected life of 5.5 years, salvage value of $55,000, and will be depreciated using the straight-line method. 18. March 17: Billy Bob paid his employees the $2,944 in salaries owed. 19. March 18: Billy Bob returned 2 of the bikes he bought from Biker's Bargains. They credited $6,100 to his account. 20. March 20: Billy Bob's Bikes paid cash dividends of $7,777. 21. March 22: Robbie Knievel returned two of the bikes because parts were falling off them. The cost of the bikes to Billy Bob was figured out to be $6,346. 22. March 24: Billy Bob purchased 6 bikes from Bikes R' Us. Each bike cost $2,833 and the credit terms are 1/10EOM,n/60. 23. March 24: Billy Bob paid FedEx $738 to have the bikes shipped to him. 24. March 26: Billy Bob paid a utilities bill in the amount of $3,247. 25. March 27: Billy Bob sells 5 bikes to Biker Chick's Chop Shop for $9,111 each with credit terms of 3/10,n/30. The cost of the bikes was determined to be $15,750. 26. March 27: Biker Chick's Chop Shop paid FedEx $615 to ship the bikes they just bought. 27. March 29: Billy Bob paid off the balance due from Biker's Bargains. 28. March 30: Robbie Knievel paid his balance off for the bikes he purchased