Use the worksheet below to prepare the appropriate transaction and adjusting journal entries for Cycle Path. For all journal entries, you must only use account names from the Chart of Accounts in cells I2 thru I25, and you must only use Basic Accounting Equation Impact codes from the list in cells K2 thru K7.

a)

Jan. 6, 2020 - Cycle Path paid the salaries payable from 2019.

Date

Basic Acct Eq Impacts

Account Names

Debits

Credits

1/6/20

L-

Salaries Payable

-884

A-

Cash

-884

completed as an example

b)

Jan. 14, 2020 - The company acquired an additional $42,500 cash from the issue of common stock.

Date

Basic Acct Eq Impacts

Account Names

Debits

Credits

Debits

Credits

c)

Jan. 17, 2020 - The company paid $765 cash for supplies to be used by the business.

Date

Basic Acct Eq Impacts

Account Names

Debits

Credits

Debits

Credits

d)

Jan. 21, 2020 - Cycle Path purchased 35 bicycles and related gear for later sale at a cost of $16,142. The bicycles and related gear were purchased on account with the terms 1/10, n/30.

Date

Basic Acct Eq Impacts

Account Names

Debits

Credits

Debits

Credits

e)

Jan. 29, 2020 - Cycle Path decided to pay $4,200 of its accounts payable balance from event (d) before the discount period expired, so Cycle Path first applied the discount to the $4,200 amount so it could reduce its accounts payable balance (note: the actual payment is described in event (f) below). After applying this discount, Cycle Paths inventory cost was $460 for each item.

Date

Basic Acct Eq Impacts

Account Names

Debits

Credits

Debits

Credits

f)

Jan. 29, 2020 - Cycle Path paid cash to settle parts of its accounts payable balance as described in event (e).

Date

Basic Acct Eq Impacts

Account Names

Debits

Credits

Debits

Credits

g)

Feb. 12, 2020 - The company sold 24 bicycles and related gear for a total price of $15,300. Sales of $11,050 were on account, while $4,250 were cash sales. Record revenue.

Date

Basic Acct Eq Impacts

Account Names

Debits

Credits

Debits

Credits

h)

Feb. 12, 2020 - The cost to Cycle Path of each product sold in event (g) was $460.

Date

Basic Acct Eq Impacts

Account Names

Debits

Credits

Debits

Credits

i)

Feb. 17, 2020 - The company paid the workers a total of $7,140 in salaries.

Date

Basic Acct Eq Impacts

Account Names

Debits

Credits

Debits

Credits

j)

Feb. 28, 2020 - The company provided $30,600 of bicycle rental and repair services. The services were billed to the customers.

Date

Basic Acct Eq Impacts

Account Names

Debits

Credits

Debits

Credits

k)

Mar. 1, 2020 - Cycle Path rented a business van, paying $4,080 in advance for a one year rental.

Date

Basic Acct Eq Impacts

Account Names

Debits

Credits

Debits

Credits

l)

Mar. 3, 2020 - Paid cash to settle additional accounts payable in the amount of $3,213. The payment was made after the discount period expired.

Date

Basic Acct Eq Impacts

Account Names

Debits

Credits

Debits

Credits

m)

Mar. 11, 2020 - Collected $32,300 of accounts receivable.

Date

Basic Acct Eq Impacts

Account Names

Debits

Credits

Debits

Credits

n)

Apr. 9, 2020 - Cycle Path performed $11,900 worth of bicycle rental and repair services for a local college; $10,200 was on account and $1,700 was for cash.

Date

Basic Acct Eq Impacts

Account Names

Debits

Credits

o)

May. 1, 2020 - Paid $6,120 for one years rent on office space in advance.

Date

Basic Acct Eq Impacts

Account Names

Debits

Credits

p)

May. 8, 2020 - Cycle Path purchased, and paid cash, for 8 bicycles and related gear for later sale at a cost of $474 each.

Date

Basic Acct Eq Impacts

Account Names

Debits

Credits

q)

May. 17, 2020 - The company paid accounts payable of $1,224, but not within the discount period (the company uses the gross method).

Date

Basic Acct Eq Impacts

Account Names

Debits

Credits

r)

Jun. 1, 2020 - Cycle Path rented a larger building; paid $5,610 for 12 months rent in advance.

Date

Basic Acct Eq Impacts

Account Names

Debits

Credits

s)

Jun. 5, 2020 - Cycle Path purchased, and paid cash, for 12 bicycles and related gear for later sale at a cost of $480 each.

Date

Basic Acct Eq Impacts

Account Names

Debits

Credits

t)

Jun. 12, 2020 - Cycle Path purchased 15 bicycles and related gear for later sale at a cost of $486 each. The purchase was on account.

Date

Basic Acct Eq Impacts

Account Names

Debits

Credits

u)

Jun. 23, 2020 - The company sold 32 bicycles and related gear for a total price of $23,800. Sales of $17,000 were on account, while $6,800 were cash sales. Record revenue.

Date

Basic Acct Eq Impacts

Account Names

Debits

Credits

v)

Jun. 23, 2020 - Record the cost of goods sold related to the sale from event (u) using the perpetual FIFO method.

Date

Basic Acct Eq Impacts

Account Names

Debits

Credits

w)

Jul. 1, 2020 - Made a full refund to a dissatisfied customer who returned a bicycle. The sale had been a cash sale for $935 with a cost of $480. Record the revenue part of the event.

Date

Basic Acct Eq Impacts

Account Names

Debits

Credits

x)

Jul. 1, 2020 - Made a full refund to a dissatisfied customer who returned a bicycle. The sale had been a cash sale for $935 with a cost of $480. Record the cost part of the event.

Date

Basic Acct Eq Impacts

Account Names

Debits

Credits

y)

Jul. 15, 2020 - Paid employees a total of $9,350 cash for salaries employees earned during the current period.

Date

Basic Acct Eq Impacts

Account Names

Debits

Credits

z)

Aug. 24, 2020 - Provided $27,200 of bicycle rental and repair services during the year. The services were billed to the customers.

Date

Basic Acct Eq Impacts

Account Names

Debits

Credits

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