Prepare general journal entry.
 

Billy Bob's Bikes Transactions Nov. 1: Billy Bob paid in advance for an 8-month insurance policy, which will begin today. He paid $3,856 cash for the policy. Nov, 1- Billy Bob purchased a building for $967,260 using S127,260 cash and then borrowing the rest from the bank. 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 7.72%. Interest acerued 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. 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. Nov. 3: Billy Bob purchased 47 bikes from Paul's Choppers. Each bike cost $3,850 and the credit Iems are 2/10, n/30, (Note: Bikes are considered Inventory) Nov. 3: Puul's Choppers paid FedEx $9,871 cash to ship the bikes to Billy Bob. K 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 S105,950. Z Nov. 5: Billy Bob paid UPS $5,645 cash to ship the bikes to Bikes R' Us. 8. Nov. 7: Billy Bob retumed 2 of the bikes he purchased from Paul's Choppers. 9: 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. Nov. 9: Bikes R' Us retumed 3 of the bikes they purchased from Billy Bob. The cost of the bikes to Billy Bob wias figured out to be $11,550. 11 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. Nov. 12: Billy Beb purchased 36 more bikes from Paul's Choppers. Each bike cost $3,875 and the credit terms are 1:20, n/60. 14 15 Nov. 12: Billy Bob paid UPS 56,999 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 cach with credit terms of 2/1o EOM, n75. 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.