Paris Bicycle Case. I need the answer to only the trial balance sheet, closing and financial statements. Attached is the information needed for this question.

Category Asset Cash OCA Liability LTA CL LTL 1 Borrow money Financing + + or + 2 Repay the principle of a loan Financing - - or - 3 Issue stock Financing + 4 Declare a dividend Financing 5 Repurchase previously issued stock Financing - 6 Purchase a long-term asset (e.g., land, building, equipment, investment, etc.) Investing - + 7 Sell a long-term asset Investing + - Operating - + (or -) Operating - + (or -) Operating + 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Purchase items (inventory) with the intent of selling them to customers Purchase items (e.g. supplies) with the intent of using them up soon in business operations Provide a service or product to a customer and collect cash during the same period Provide a service or product to a customer when cash was collected during an earlier period Provide a service or product to a customer when cash will be collected during a later period Collect payment from a customer when service/product will be provided during a later period temporary rev exp div + + (or -) + Operating - Operating + + + Collect payment from a customer when service/product Operating was provided during an earlier period + Consume long-term assets in the operation of the business RE + Operating Transfer inventory to a customer as part of a product sale Consume services in the operation of the business and pay cash during the same period Consume services in the operation of the business when cash was paid during an earlier period Consume services in the operation of the business when cash will be paid during a later period Pay a creditor (supplier, empl, govt) when service/product will be consumed during a later period Pay a creditor (supplier, empl, govt) when service/product was consumed during an earlier period Consume short-term assets in the operation of the business Equity CS + - - - - Operating - - - Operating + Operating - Operating - Operating - Cash Notes Payable Notes Payable Cash Cash Common Stock Dividends Declared Dividends Payable Treasury Stock Cash Equipment Cash Cash Equipment Inventory Cash Supplies Cash Cash Sales Revenue Unearned Revenue Sales Revenue Accounts Receivable Sales Revenue Cash Unearned Revenue Cash Common Complications Issue bonds Buy on credit Gain or loss on sale Buy on credit Buy on credit Accounts Receivable Operating Operating Sample Journal Entry - + - Cost of Good Sold Inventory Wages Expense Cash Insurance Expense Prepaid Insurance Income Tax Expense Taxes Payable Prepaid Insurance Cash Accounts Payable Cash Rent Expense Supplies (on hand) Depreciation Expense Operating - - 23 Close revenue accounts at period end Closing + 24 Close expense and dividend accounts at period end Closing - - - Accumulated Deprec. Sales Revenue Retained Earnings Retained Earnings Wages Expense Amortization Acct 3401 Paris Bicycle Case Instructions Paris Bicycle, Inc. began operations on January 2, 2017. In this case, your will complete Paris Bicycle's accounting cycle and produce its financial statements for the month of operations. You are expected to complete this case in 2 parts, as described below: Part 1 - Journal Entries and T-Accounts On the "J-E's" worksheet, analyze the events that occurred during the month and prepare the appropriate journal entries to record those events. When analyzing events, remember to think through the following issues: When did an economic event happen? What is happening? How are the company's Assets (A), Liabilities (L), and Owners equity (OE) changed ( or ) by this event (if at all)? Do we need a journal entry? What accounts should be used? What is the amount (measurement)? Then consider the information provided and prepare the appropriate adjusting journal entries for the end of the month. Post all of these journal entries into the T-accounts on the "T-Accts" worksheet, and summarize all of the accounts (single total as of the end of the month for each account). Print the "J-E's" and "T-Accts" worksheets, staple the pages together, write your name at the top of the 1st page and bring a copy to turn in before the start of the 2nd class meeting of the semester. Part 2 - Trial Balances, Closing Entries, and Financial Statements Use the information from the T-accounts to complete the entire trial balance worksheet on the "Trial Bals" worksheet, the closing journal entries on the "Closing" worksheet, and all 3 financial statements on the "Fin Stmts" worksheet. Print the "Trial Bals", ""Closing", and "Fin Stmts" worksheets, staple the pages together, write your name at the top of the 1st page and bring a copy to turn in before the start of the 3rd class meeting of the semester. Paris Bicycle Case Acct 3401 Journal Entries Name: _________________________ Transaction Journal Entries Analyze the following events and (if appropriate), prepare a journal entry (in proper form) to record the event in Paris Bicycle's financial records. (1) Paris Bicycle, Inc. began operations on January 2, 2017 with a stock issuance. Paris issued 1,000 shares of no par value stock for $25 per share. 1/2/2017 Cash A Common Stock OE Issued 1000 shares of no-par common stock $25,000 $25,000 (2) On Jan. 2, 2017, Paris paid the rent on its building. The rent is $6,000 per year and must be prepaid on the first day of each year. (3) On Jan. 2, 2017, Paris purchased equipment for the showroom from Taylor Fixtures, Inc. The total cost of the equipment was $12,000. Paris bought the equipment with cash. The equipment has an expected useful life of 10 years and will be worthless at the end of 10 years. (4) On Jan. 4, 2017, Paris received a 3-year $120,000 10% bank loan that pays interest semi-annually on June 30 and December 31 of each year. Acct 3401 Paris Bicycle Case Journal Entries (5) On Jan. 5, 2017, Paris purchased 100 bikes at a cost of $100 per bike from Schwinn. The purchase was made on account. (6) On Jan. 15, Paris sublet a small portion of the bike shop to Chip the repair guy for $100 per month. On that same day, Chip pays a year's rent in advance. (7) On Jan. 16, 2017, Paris paid Schwinn $8,000 towards the outstanding balance owed to Schwinn. (8) On Jan. 18, 2017, Paris sold 10 bikes to the Smith Daycare Co. for $220 per bike. Paris accepted credit for the sales. (9) On Jan. 24, 2017, the Smith Daycare Co. paid Paris Bike $1,000 as partial payment of its outstanding account. Acct 3401 Paris Bicycle Case Journal Entries Paris Bicycle Case Acct 3401 Journal Entries Adjusting Journal Entries Use the following assumptions as you analyze Paris Bicycle's Unadjusted Trial Balance for potential adjusting entries: 1) Assume that the entire CASH balance earns interest of 5% (annual rate of interest) AND assume, (for simplicity this account that pay the entire CASH balance interest for 1 complete month in January. 2) regarding For the Unearned Rentonly), Revenue, attention to the date ofearns the transaction 3) The tax rate for Paris Bike is 30% 4) There are 6 adjusting entries that should be made. The first is already done and posted as an example. (A) Paris used its rented building for the month of January. 1/31/2017 OE Rent Expense Prepaid Rent A Incurred 1 month of rent expense against prepaid rent accoun $500 $500 (B) Paris earned (but did not collect) rent for the second half of January for the portion of the bike shop it sublet to Chip the repair guy. (C) Paris earned (but did not collect) interest at a 5% annual rate on its month-end cash balance for the month of January (D) Paris incurred (but did not pay) interest expense on its $120,000 loan (E) Paris used its equipment for 1 month of its 10-year useful life (assume straight-line depreciation) Acct 3401 Paris Bicycle Case (F) Paris incurred (but did not pay) income tax expense on its income before taxes Journal Entries Paris Bicycle Case Acct 3401 1/1 (1) Cash 0 25,000 1/31 1/1 Inventory 0 Accounts Receivable 1/1 0 Interest Receivable 1/1 0 1/31 1/31 1/1 1/31 T-Accounts Prepaid Rent 0 500 (A) 1/31 Accumulated Depreciation 0 1/1 1/31 Accounts Payable 0 1/31 Income Tax Payable 0 1/1 Interest Payable 0 1/31 Common Stock 1/1 Equipment 0 1/1 Unearned Rent Revenue 0 1/1 1/31 1/31 Notes Payable 1/1 1/31 Retained Earnings 0 1/1 1/31 Paris Bicycle Case Acct 3401 0 1/1 25,000 (1) 0 1/31 Rent Revenue 0 1/1 0 1/31 Cost of Goods Sold 1/1 0 1/31 1/31 1/1 1/31 Sales Revenue 1/1 T-Accounts 1/1 1/31 1/1 (A) Rent Expense 0 500 1/31 Interest Expense 0 Interest Revenue 0 Income Tax Expense 1/1 0 1/31 1/1 1/31 Depreciation Expense 1/1 0 1/31 Trial Balance Worksheet Paris Bicycle Case Acct 3401 Note: Pull numbers from general ledger (T-accounts) Name: _________________________ Account Name Unadj. Trial Balance dr cr Adjusting Entries dr cr Adj. Trial Balance dr cr Closing Entries dr cr Final Trial Balance dr cr Cash Accounts Receivable Interest Receivable Inventory Prepaid Rent (A) 500 (500) (500) 500 500 Equipment Accumulated Depreciation Accounts Payable Unearned Rent Revenue Income Tax Payable Interest Payable Notes Payable Common Stock Retained Earnings Sales Revenue Rent Revenue Interest Revenue Cost of Goods Sold Rent Expense (A) 500 Depreciation Expense Interest Expense Income Tax Expense Totals 0 0 500 500 0 0 0 0 0 0 Acct 3401 Paris Bicycle Case Closing Entries Closing Journal Entries Use the balances on Paris Bike's Adjusted Trial Balance to prepare the appropriate closing journal entry(ies) for January, 2017. (A) Close revenue accounts (B) Close expense accounts Acct 3401 Financial Statements Paris Bicycle, Inc. Income Statement For the Month Ended January 31, 2017 (multi-step version) Sales Revenue Acct 3401 Financial Statements Paris Bicycle, Inc. Statement of Stockholders' Equity For the Month Ended January 31, 2017 Common Stock Beginning Balance, Jan. 1, 2017 Add: Issue Common Stock Less: Repurchase Common Stock Add: Net Income Less: Dividends Ending Balance, Jan. 31, 2017 Retained Earnings Acct 3401 Financial Statements Paris Bicycle, Inc. Balance Sheet As Of January 31, 2017 (classified) Assets: Cash