January 1 The owners hire Lisa Marton to manage the store, paying her a salary of $3,000 a month Lisa is paid on the 1st of every month, starting on February 1 (which would represent her January pay) They have one other employee who they pay $2,000 a month, also on the 1st of the following month January 14 Paid utilities for 4th quarter of 2017, $875 February 1 Installed new light fixtures and display cases in the leased store CWB paid $1,800 for the fixtures, $230 for shipping to the store, and $800 to an electrician to install The landlord gave CWB permission to remove and dispose of the old fixtures CWB sold the old fixtures for $110 CWB anticipates being in the store for at least 3 years CWB cannot take the light fixtures with them if they relocate as they will revert to the lessor CWB can take the display cases, which cost $5,400, if they move Both the display cases and light fixtures have a six year useful life March 1 CWB invests in a $2,000 3 month treasury bill paying interest of 2 0 March 12 One of the standard bikes sold was returned by the customer The bike sold for $225 CWB paid $80 for it CWB provided a full refund CWBs policy is to provide a customer with a full refund within 30 day of purchase as long as the bike is returned in good condition While the bike is in good working condition, CWB does not anticipate being able to sell the bike as new rather it anticipates marking it down and selling it for $150 March 24 A customer puts down a deposit of $400 on a high end racing bike that sells for $2,800 CWB ordered the bike from the manufacturer The manufacturer promises CWB will have the bike at the store on April 3 Here is other information on other activity and recurring transactions that occurred during the period CWB rents its premises for $1,600 per month, with rent due on the 15 st of the prior month CWB has a business insurance policy, which it purchased for $5,280 on May 1, 2017 The policy runs until April 30, 2018 CWB has a $15,000 loan outstanding at an interest rate of 10 a year, with annual interest due on January 1 The loan matures on January 1, 2021 CWB offers bike tune ups for $80 each CWBs employees are experts in adjusting brakes Below is the number of tune ups performed in each month All customers pay in cash (For recording the transactions, you can assume all tune ups are done the last day of the month) Month Number of Tune Ups January 12 February 35 March 30 CWB has the following purchases and sales of racing bikes (there were no racing bikes in beginning inventory) Date Transaction Quantity Cost per Bike Sales Price per Bike January 15 Purchase 10 $150 January 25 Purchase 15 $155 February 12 Sale 10 $635 February 13 Purchase 14 $170 March 1 Sale 20 $640 March 20 Purchase 101 1 $180 All purchasers of racing bikes are given two years of complimentary tune ups No tune ups on bikes sold were performed in the current quarter All purchases were made using cash except the March 20th purchase for which CWB obtained three months credit from the bike supplier CWB has 25 standard bikes in beginning inventory The bikes were purchased at a price of $101 each The following purchases and sales of standard bikes occurred during the quarter Date Transaction Quantity Cost per Bike January 31 Sale 10 February 17 Purchase 19 $111 February 19 Sale 25 March 2 Purchase 22 $120 All purchasers of standard bikes are given the option of buying a bike for $285, or a bike with two years of tune ups for $355 Three of the bikes sold on February 19 th were sold with the tune up option No tune ups on bikes sold were performed in the current quarter CWB has 12 childrens bikes in beginning inventory The bikes were purchased at a price of $98 each The following purchases and sales of childrens bikes occurred during the quarter Date Transaction Quantity Cost per Bike Sales Price per Bike January 3 Purchase 30 $95 January 25 Sale 5 $175 February 12 Sale 10 $180 February 13 Purchase 15 $99 March 11 Sale 25 $175 Tune ups are not usually performed on childrens bikes CWB owns various tools and equipment which it pools for purpose of calculating depreciation In the past it has used straight line depreciation over a ten year period with no scrap or salvage value for these assets However, with technology changing rapidly, CWB questions whether it will have to replace the equipment earlier On April 7 received Utilities bill for the first quarter of 2018 $945 The tax rate is 20 Cherry White Bike Company Post Closing Trial Balance 12 31 2017 Account Title Debit Credit Cash $33,311 Store supplies 460 Prepaid rent 1,600 Prepaid insurance 1,560 Inventory standard bikes (25 bikes) 2,525 Inventory childrens bikes (12 bikes) 1,176 Equipment 14,500 Accumulated depreciation equipment $4,350 Accounts payable 8,724 Utilities payable 875 Salaries payable 2,000 Interest payable 1,500 Loans payable 15,000 Capital stock 20,000 Retained Earnings 7,033 Totals $55,132 $55,132 NEED Journal Entries, Income Statement, Stockholders' Equity Statement, and Balance Sheet and all related notes such as significant accounting policies, cash and cash equivalents, revenue recognition, inventory, equipment, and any other notes

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January 1: The owners hire Lisa Marton to manage the store, paying her a salary of $3,000 a month. Lisa is paid on the 1st

January 1: The owners hire Lisa Marton to manage the store, paying her a salary of $3,000 a month. Lisa is paid on the 1st of every month, starting on February 1 (which would represent her January pay). They have one other employee who they pay $2,000 a month, also on the 1st of the following month.

January 14: Paid utilities for 4th quarter of 2017, $875.

February 1: Installed new light fixtures and display cases in the leased store. CWB paid $1,800 for the fixtures, $230 for shipping to the store, and $800 to an electrician to install. The landlord gave CWB permission to remove and dispose of the old fixtures. CWB sold the old fixtures for $110. CWB anticipates being in the store for at least 3 years. CWB cannot take the light fixtures with them if they relocate as they will revert to the lessor. CWB can take the display cases, which cost $5,400, if they move. Both the display cases and light-fixtures have a six-year useful life.

March 1: CWB invests in a $2,000 3-month treasury bill paying interest of 2.0%

March 12: One of the standard bikes sold was returned by the customer. The bike sold for $225. CWB paid $80 for it. CWB provided a full refund. CWBs policy is to provide a customer with a full refund within 30 day of purchase as long as the bike is returned in good condition. While the bike is in good working condition, CWB does not anticipate being able to sell the bike as new rather it anticipates marking it down and selling it for $150.

March 24: A customer puts down a deposit of $400 on a high-end racing bike that sells for $2,800. CWB ordered the bike from the manufacturer. The manufacturer promises CWB will have the bike at the store on April 3.

Here is other information on other activity and recurring transactions that occurred during the period.

-CWB rents its premises for $1,600 per month, with rent due on the 15^st of the prior month.

-CWB has a business insurance policy, which it purchased for $5,280 on May 1, 2017. The policy runs until April 30, 2018.

CWB has a $15,000 loan outstanding at an interest rate of 10% a year, with annual interest due on January 1. The loan matures on January 1, 2021.

CWB offers bike tune-ups for $80 each. CWBs employees are experts in adjusting brakes. Below is the number of tune-ups performed in each month. All customers pay in cash. (For recording the transactions, you can assume all tune-ups are done the last day of the month).

Month	Number of Tune-Ups
January	12
February	35
March	30

CWB has the following purchases and sales of racing bikes (there were no racing bikes in beginning inventory)*:

Date	Transaction	Quantity	Cost per Bike	Sales Price per Bike
January 15	Purchase	10	$150
January 25	Purchase	15	$155
February 12	Sale	10		$635
February 13	Purchase	14	$170
March 1	Sale	20		$640
March 20	Purchase	101/1	$180

*All purchasers of racing bikes are given two years of complimentary tune-ups. No tune-ups on bikes sold were performed in the current quarter.

**All purchases were made using cash except the March 20th purchase for which CWB obtained three-months credit from the bike supplier.

CWB has 25 standard bikes in beginning inventory. The bikes were purchased at a price of $101 each. The following purchases and sales of standard bikes occurred during the quarter:

Date	Transaction	Quantity	Cost per Bike
January 31	Sale	10
February 17	Purchase	19	$111
February 19	Sale	25
March 2	Purchase	22	$120

+All purchasers of standard bikes are given the option of buying a bike for $285, or a bike with two years of tune-ups for $355. Three of the bikes sold on February 19^th were sold with the tune-up option. No tune-ups on bikes sold were performed in the current quarter.

CWB has 12 childrens bikes in beginning inventory. The bikes were purchased at a price of $98 each. The following purchases and sales of childrens bikes occurred during the quarter^:

Date	Transaction	Quantity	Cost per Bike	Sales Price per Bike
January 3	Purchase	30	$95
January 25	Sale	5		$175
February 12	Sale	10		$180
February 13	Purchase	15	$99
March 11	Sale	25		$175

^Tune-ups are not usually performed on childrens bikes

CWB owns various tools and equipment which it pools for purpose of calculating depreciation. In the past it has used straight-line depreciation over a ten-year period with no scrap or salvage value for these assets. However, with technology changing rapidly, CWB questions whether it will have to replace the equipment earlier.

- On April 7 received Utilities bill for the first quarter of 2018 - $945.

- The tax rate is 20%.

Cherry & White Bike Company

Post-Closing Trial Balance

12/31/2017

*Account Title*	Debit	Credit
Cash	$33,311
Store supplies	460
Prepaid rent	1,600
Prepaid insurance	1,560
Inventory standard bikes (25 bikes)	2,525
Inventory childrens bikes (12 bikes)	1,176
Equipment	14,500
Accumulated depreciation - equipment		$4,350
Accounts payable		8,724
Utilities payable		875
Salaries payable		2,000
Interest payable		1,500
Loans payable		15,000
Capital stock		20,000
Retained Earnings		7,033
Totals	$55,132	$55,132

NEED Journal Entries, Income Statement, Stockholders' Equity Statement, and Balance Sheet and all related notes such as significant accounting policies, cash and cash equivalents, revenue recognition, inventory, equipment, and any other notes.