Question
Britts Bikes began operations in May 2012 and had the following transactions. Owner invested $40,000 cash and a truck worth $12,000 in exchange for stock.
Britts Bikes began operations in May 2012 and had the following transactions.
Owner invested $40,000 cash and a truck worth $12,000 in exchange for stock.
Paid rent expense of $8,000.
Purchased $100,000 of bicycle inventory on credit.
Sold bicycles for cash of $169,000. The cost of the bikes sold was $60,000.
Sold and invoiced bicycles to a client for $31,800. The cost of the bikes sold was $16,000.
Bought promotional materials and plane tickets for Tour de France, for $30,000 in cash and recorded the entire amount as advertising expense.
Paid $8,000 in cash for supplies to do bike repairs.
Collected $20,000 from accounts receivable.
Paid for bikes purchased on credit in c above.
Paid cash dividends of $1,000.
Recorded revenue for $2,000 received from customer.
Required: Record each transaction a) through k) in the financial statements effects template, below.
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| Balance Sheet | Income Statement
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| Transaction | Cash Asset | + | Noncash Assets | = | Liabil- ities | + | Contrib. Capital | + | Earned Capital | Rev-enues |
| Expen-ses | = | Net Income | ||
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Principles Of Cost Accounting
Authors: Edward J. Vanderbeck
14th Edition
0324374178, 978-0324374179
