During its first month of operation, the Bethany's Bicycle Corporation, which specializes in bicycle repairs, completed the following transactions.
March Transactions
Date	Transaction Description
March 1	Began business by making a deposit in a company bank account of $20,000, in exchange for 2,000 shares of $10 par value common stock.
March 1	Paid the premium on a 1-year insurance policy, $2,400.
March 1	Paid the current month's store rent expense, $1,900.
March 3	Purchased repair equipment from Andrew Company, $5,800. Paid $1,000 down and the balance was placed on account. Payments will be $400.00 per month for 12 months. The first payment is due 4/1. Note: Use Accounts Payable for the Balance Due.
March 8	Purchased repair supplies from Jackson Company on credit, $650.
March 10	Paid telephone bill for March, $340.
March 11	Cash bicycle repair revenue for the first third of March, $1,650.
March 18	Made payment to Jackson Company, $400.
March 20	Cash bicycle repair revenue for the second third of March, $2,450.
March 31	Cash bicycle repair revenue for the last third of March, $1,250.
March 31	Paid the current month's electice bill, $250.
March 31	Declared and paid cash dividend of $1,000.

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Use the following account descriptions for journal entries.
Chart of Accounts
Account Type	Account Number	Account Title	Normal Balance
Assets
	111	Cash	Debit
	117	Prepaid Insurance	Debit
	119	Repair Supplies	Debit
	144	Repair Equipment	Debit
	145	Accum Dep -Repair Equipment	Credit
Liabilities
	212	Accounts Payable	Credit
	213	Income Tax Payable	Credit
Stockholders Equity
	311	Common Stock	Credit
	312	Retained Earnings	Credit
	313	Dividends	Debit
Revenue
	411	Bicycle Repair Revenue	Credit
Expenses
	511	Store Rent Expense	Debit
	512	Telephone Expense	Debit
	513	Insurance Expense	Debit
	514	Repair Supplies Expense	Debit
	515	Dep Expense - Repair Equipment	Debit
	516	Income Tax Expense	Debit
	517	Electric Expense	Debit

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REQUIREMENT #1: Prepare journal entries to record the March transactions in the General Journal below. Remember that Debits must equal CreditsAll of your Journal Entries should balance.
General Journal
Date	Account Number from Chart of Accounts tab	Account Title from Chart of Accounts tab	Debit	Credit

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	REQUIREMENT #2: Post the March journal entries to the following T-Accounts and compute ending balances.
Date	Cash (111)			Date	Bicycle Repair Revenue (411)
	Prepaid Insurance (117)				Store Rent Expense (511)
	Repair Supplies (119)				Telephone Expense (512)
	Repair Equipment (144)				Insurance Expense (513)
	Accum. Depr.-Repair Equipment (145)				Repair Supplies Expense (514)
	Accounts Payable (212)				Depr. Exp.-Repair Equipment (515)
	Income Taxes Payable (213)				Income Taxes Expense (516)
	Common Stock (311)				Electric Expense (517)
	Retained Earnings (312)
	Dividends (313)

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REQUIREMENT #3: Prepare a trial balance for March in the space below.
Bethany's Bicycle Corporation Trial Balance March 31
Account	Account	Balance
Number	Title	Debit	Credit

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Requirement #4: Prepare adjusting entries using the following information in the General Journal below. Show your calculations! a) One month's insurance has expired. b) The remaining inventory of repair supplies is $200. c) The estimated depreciation on repair equipment is $120. d) The estimated income taxes are $65.
Requirement #5: Post the adjusting entries on March 31 below to the General Ledger T-accounts and compute adjusted balances. Just add to the balances that are already listed.
General Journal
Date	Account Number from Chart of Accounts tab	Account Title from Chart of Accounts tab	Debit	Credit

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REQUIREMENT #6: Prepare an Adjusted Trial Balance in the space below.
Bethany's BicycleCorporation Adjusted Trial Balance March 31
Account	Account	Balance
Number	Title	Debit	Credit

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Requirement #7: Prepare the financial statements for Bethany's Bicycle Corporation as of March 31 in the space below. You will only be preparing the Income Statement, Statement of Retained Earning, and the Balance Sheet. The Statement of Cash Flows is a required Financial Statement, but is not required for this project.
Bethany's Bicycle Corporation				Bethany's Bicycle Corporation			Bethany's Bicycle Corporation
Income Statement				Statement of Retained Earnings			Balance Sheet
For the Month Ending March 31				For the Month Ending March 31			March 31
Revenues:				Retained Earnings, March 1	$0		Assets:
Bicycle Repair Revenue				Add: Net Income			Cash
Total Revenue		0		Subtotal	0		Prepaid Insurance
				Less: Dividends			Repair Supplies
Expenses:				Retained Earnings, March 31	$0		Repair Equipment
Store Rent Expense							Less: Accum. Depr.
Telephone Expense							Total Assets	$0
Insurance Expense
Repair Supplies Exp.							Liabilities and Stockholders' Equity
Depreciation Exp.							Liabilities:
Income Taxes Expense							Accounts Payable
Electric Expense							Income Taxes Payable
Total Expenses		0					Total Liabilities	0
Net Income		0					Stockholders' Equity:
							Common Stock
							Retained Earnings
							Total Stockholders' Equity	0
							Total Liabilities & Stockholders' Equity	$0

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Requirement #8: Prepare the closing entries at March 31 in the General Journal below. Hint:Use the balances for each account which appear on the Adjusted Trial Balance for your closing entries.
Requirement #9: Post the closing entries to the T-Accounts on the General Ledger worksheet and compute ending balances. Just add to the adjusted balances already listed.
General Journal
Date	Account Number from Chart of Accounts tab	Account Title from Chart of Accounts tab	Debit	Credit

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