nt/file?cmd=view&content_id=_4561931_18_course_id=_134322_1 Bearkat Bicycles Instructions: You should check off each requirement to ensure all have been completed. Part 1a (worth 35 points - Due Monday, February 11h) For the month of January 2020: 1. Record the journal entries in the general journal for the transactions listed on the following pages. Round all journal entries to the nearest dollar amounts. a. Post all entries to their respective accounts in the general ledger. b. Record all job costs on their respective job cost sheets. 2. Prepare the unadjusted trial balance. 3. Record adjusting journal entries and post them to their respective ledger accounts. 4. Prepare an adjusted trial balance. 5. Submit for grading. Part 1b /worth 20 points - Due Monday, February 27) Once Part I is returned, complete the following: 1. Prepare a statement of cost orgoods manufactured. 2. Prepare an income statement. 3. Prepare a retained earnings statement. 4. Prepare a balance sheet. 5. Prepare closing journal entries and post them to their respective ledger accounts. 6. Prepare a post-closing trial balance. 7. Submit for grading. Group Evaluation (5 points) - Due Monday, March 3rd Provide an evaluation for each member of your group based on if they participated in the group assignment. Use a 0-5 point scale. If all students participated equally. everyone should receive a 5. Zeros should be given to those who were not responsive and never tried to participate in the project. Please see me if there are any issues that need to be discussed. Please treat each other with respect and professionalism Background Information: In January 2020, Sammy Bearkat opened a bicycle manufacturing business named Bearkat Bicycles. Sammy Bearkat, the sole stockholder, invested $50,000 for 13,000 shares of common stock in December. The company currently manufactures and sells racing bicycles for $1,850 to customers in Huntsville, Texas and its surrounding areas. His business has become so successful that Sammy can no longer build the bicycles out of his garage; thus, he has decided to expand his business. To meet demand, he has hired eight employees including a production supervisor, a salesperson, and an administrative assistant. The company has just signed a one-year lease with a local broker for downtown retail space. The company has one order (Job 14) that was started on December 15, 2019 for 5 racing bicycles that are still in process but will be completed in the next month. Bearkat Bicycles uses a manual accounting system within excel and a chart of accounts has been provided. They've received four new orders for racing bicycles, which Bearkat will assign into four jobs as follows: o Job 15: 5 racing bicycles ordered by Taylor Masterpieces, Inc. o Job 16: 8 racing bicycles ordered by Barrett's Amazing Cyclists. O Job 17:12 racing bicycles ordered by Jordan's Roadsters, Inc. o Job 18: 6 racing bicycles ordered by Colton's Bike Emporium. Part 1a (worth 30 points - Due Monday, February 11th) *Begin by using the December 2019 Balance Sheet and Chart of Accounts to create your ledgers under "General Ledger" tab. See Cash Ledger as example For the month of January 2020: Record the journal entries in the general journal for the transactions listed on the following pages. Round all journal entries to the nearest dollar amounts. a. Post all entries to their respective accounts in the general ledger with Item descriptions b. Record all job costs on their respective job cost sheets. January 2020 Transactions: Per the lease agreement, which requires the first three months' rent be paid in advance, Bearkat Bicycles paid $6,000 to Sunset Run Properties to lease 1,000 square feet of retail space. 02 A 12-year, 5% note was issued to purchase an existing 3,800 square foot building on an acre of land for $180,000. The value of the land was $120,000. The building has an estimated useful life of 15 years and a salvage value of $5,000 Raw materials for production totaling $30,000 were purchased on account. Direct materials amounted to $25,000 and indirect materials amounted to $5,000. The production department requisitioned materials for the jobs in the following amounts: Requisition No. Job Direct Indirect 14 $ 1,150 $ 75 21 1 5 $475 135 16 $ 3,350 $ 400 05 10 Bearkat Bicycles received $10,650 owed from a customer account, The Huntsville Hotshots, and deposited this amount into the company's checking account. Bearkat Bicycles paid the accrued payroll from the last two weeks of December 2019. Requisitioned more materials for jobs in progress in the following amounts: Requisition No. lob Direct Indirect $ 800 $ 197 16 $1,500 $ 176 25 17 $5,000 $ 615 $3,697 $ 213 23 15 18 Invoice #1265 for $760 from Huntsville Water & Electric is received and due February 10. The invoice includes the water and electricity used by Bearkat Bicycles. Assume 63% of the invoice reflects factory use and the other 37% reflects administrative activities 20 The company declares and pays a cash dividend of $.65 per share. 22 The first note payment of $1,909 is made to the First Bank of Huntsville, which includes $750 in interest. (Interest - (180,000*.05)/12)) 29 Employees are paid monthly on the 5th of every month. The company accrues the payroll for the month of January, which will be paid on February 5. The payroll includes the sales and administrative staff that worked a total of 118 hours and earns $11.75 per hour, the factory maintenance worker that worked a total of 108 hours and earns $11.50 per hour, the production supervisor earns $800 a week (assume an even four weeks was worked). Ignore all related payroll taxes. In addition, the following hours were incurred by assembly line workers based on the production time cards for each job: Hours Rate $11.50 $12.50 140 175 77 $11950 $11.50 $11.50 Apply factory overhead to all jobs (14, 15, 16, 17, & 18). Overhead is allocated based on direct labor costs. Budgeted overhead costs for the year were estimated to be $115,300. Bearkat estimates that direct labor costs will amount to $82,357 for the year. Jobs 14, 15, and 17 were completed and transferred to the warehouse. 29 Sold all bikes from Job 14 and Job 15, and 9 bicycles from Job 17 for cash. Ignore sales tax. Job 16 was completed and transferred to the warehouse. It is now time to prepare the unadjusted trial balance. Month-end Adjustments Record adjusting journal entries and post them to their respective ledger accounts. Use the information below to prepare any adjusting journal entries that are necessary for the month of January. 63% of the manufacturing building is used to build bikes and 37% is for administrative activities. The retail site is used for sales to the customers. The company uses the straight-line method to calculate depreciation on the building and tools used in the factory (round to the nearest whole number). o Factory tools have a salvage value of 725 and a 10 year useful life. A portion of the prepaid rent has expired. Only $150 worth of office supplies remain on hand Calculate and journalize over/underapplied factory overhead. It is now time to prepare the adjusted trial balance. You have completed Part 1. Submit the Following for grading: Job cost sheets General journal General ledger Unadjusted trial balance Adjusted trial balance nt/file?cmd=view&content_id=_4561931_18_course_id=_134322_1 Bearkat Bicycles Instructions: You should check off each requirement to ensure all have been completed. Part 1a (worth 35 points - Due Monday, February 11h) For the month of January 2020: 1. Record the journal entries in the general journal for the transactions listed on the following pages. Round all journal entries to the nearest dollar amounts. a. Post all entries to their respective accounts in the general ledger. b. Record all job costs on their respective job cost sheets. 2. Prepare the unadjusted trial balance. 3. Record adjusting journal entries and post them to their respective ledger accounts. 4. Prepare an adjusted trial balance. 5. Submit for grading. Part 1b /worth 20 points - Due Monday, February 27) Once Part I is returned, complete the following: 1. Prepare a statement of cost orgoods manufactured. 2. Prepare an income statement. 3. Prepare a retained earnings statement. 4. Prepare a balance sheet. 5. Prepare closing journal entries and post them to their respective ledger accounts. 6. Prepare a post-closing trial balance. 7. Submit for grading. Group Evaluation (5 points) - Due Monday, March 3rd Provide an evaluation for each member of your group based on if they participated in the group assignment. Use a 0-5 point scale. If all students participated equally. everyone should receive a 5. Zeros should be given to those who were not responsive and never tried to participate in the project. Please see me if there are any issues that need to be discussed. Please treat each other with respect and professionalism Background Information: In January 2020, Sammy Bearkat opened a bicycle manufacturing business named Bearkat Bicycles. Sammy Bearkat, the sole stockholder, invested $50,000 for 13,000 shares of common stock in December. The company currently manufactures and sells racing bicycles for $1,850 to customers in Huntsville, Texas and its surrounding areas. His business has become so successful that Sammy can no longer build the bicycles out of his garage; thus, he has decided to expand his business. To meet demand, he has hired eight employees including a production supervisor, a salesperson, and an administrative assistant. The company has just signed a one-year lease with a local broker for downtown retail space. The company has one order (Job 14) that was started on December 15, 2019 for 5 racing bicycles that are still in process but will be completed in the next month. Bearkat Bicycles uses a manual accounting system within excel and a chart of accounts has been provided. They've received four new orders for racing bicycles, which Bearkat will assign into four jobs as follows: o Job 15: 5 racing bicycles ordered by Taylor Masterpieces, Inc. o Job 16: 8 racing bicycles ordered by Barrett's Amazing Cyclists. O Job 17:12 racing bicycles ordered by Jordan's Roadsters, Inc. o Job 18: 6 racing bicycles ordered by Colton's Bike Emporium. Part 1a (worth 30 points - Due Monday, February 11th) *Begin by using the December 2019 Balance Sheet and Chart of Accounts to create your ledgers under "General Ledger" tab. See Cash Ledger as example For the month of January 2020: Record the journal entries in the general journal for the transactions listed on the following pages. Round all journal entries to the nearest dollar amounts. a. Post all entries to their respective accounts in the general ledger with Item descriptions b. Record all job costs on their respective job cost sheets. January 2020 Transactions: Per the lease agreement, which requires the first three months' rent be paid in advance, Bearkat Bicycles paid $6,000 to Sunset Run Properties to lease 1,000 square feet of retail space. 02 A 12-year, 5% note was issued to purchase an existing 3,800 square foot building on an acre of land for $180,000. The value of the land was $120,000. The building has an estimated useful life of 15 years and a salvage value of $5,000 Raw materials for production totaling $30,000 were purchased on account. Direct materials amounted to $25,000 and indirect materials amounted to $5,000. The production department requisitioned materials for the jobs in the following amounts: Requisition No. Job Direct Indirect 14 $ 1,150 $ 75 21 1 5 $475 135 16 $ 3,350 $ 400 05 10 Bearkat Bicycles received $10,650 owed from a customer account, The Huntsville Hotshots, and deposited this amount into the company's checking account. Bearkat Bicycles paid the accrued payroll from the last two weeks of December 2019. Requisitioned more materials for jobs in progress in the following amounts: Requisition No. lob Direct Indirect $ 800 $ 197 16 $1,500 $ 176 25 17 $5,000 $ 615 $3,697 $ 213 23 15 18 Invoice #1265 for $760 from Huntsville Water & Electric is received and due February 10. The invoice includes the water and electricity used by Bearkat Bicycles. Assume 63% of the invoice reflects factory use and the other 37% reflects administrative activities 20 The company declares and pays a cash dividend of $.65 per share. 22 The first note payment of $1,909 is made to the First Bank of Huntsville, which includes $750 in interest. (Interest - (180,000*.05)/12)) 29 Employees are paid monthly on the 5th of every month. The company accrues the payroll for the month of January, which will be paid on February 5. The payroll includes the sales and administrative staff that worked a total of 118 hours and earns $11.75 per hour, the factory maintenance worker that worked a total of 108 hours and earns $11.50 per hour, the production supervisor earns $800 a week (assume an even four weeks was worked). Ignore all related payroll taxes. In addition, the following hours were incurred by assembly line workers based on the production time cards for each job: Hours Rate $11.50 $12.50 140 175 77 $11950 $11.50 $11.50 Apply factory overhead to all jobs (14, 15, 16, 17, & 18). Overhead is allocated based on direct labor costs. Budgeted overhead costs for the year were estimated to be $115,300. Bearkat estimates that direct labor costs will amount to $82,357 for the year. Jobs 14, 15, and 17 were completed and transferred to the warehouse. 29 Sold all bikes from Job 14 and Job 15, and 9 bicycles from Job 17 for cash. Ignore sales tax. Job 16 was completed and transferred to the warehouse. It is now time to prepare the unadjusted trial balance. Month-end Adjustments Record adjusting journal entries and post them to their respective ledger accounts. Use the information below to prepare any adjusting journal entries that are necessary for the month of January. 63% of the manufacturing building is used to build bikes and 37% is for administrative activities. The retail site is used for sales to the customers. The company uses the straight-line method to calculate depreciation on the building and tools used in the factory (round to the nearest whole number). o Factory tools have a salvage value of 725 and a 10 year useful life. A portion of the prepaid rent has expired. Only $150 worth of office supplies remain on hand Calculate and journalize over/underapplied factory overhead. It is now time to prepare the adjusted trial balance. You have completed Part 1. Submit the Following for grading: Job cost sheets General journal General ledger Unadjusted trial balance Adjusted trial balance