You are presented with a trial balance as of the end of 2018 and must add the transactions and activities that occurred in the first quarter of 2019 as listed below You can add accounts to the trial balance, as needed January 1 The owners hire Nina Marton to manage the store, paying her a salary of $2,600 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 $1,600 a month, also on the 1 st of the following month Employees work 40 hours a week January 14 Paid utilities for 4 th quarter of 2018, $775 February 1 Installed new light fixtures and display cases in the leased store CWB paid $1,900 for the fixtures, $150 for shipping to the store, and $400 to an electrician to install CWB paid 6 sales tax on the fixtures and shipping in addition to the cost of the fixtures and equipment It did not pay a sales tax to the electrician The landlord gave CWB permission to remove and dispose of the old fixtures CWB sold the old fixtures for $200 CWB anticipates being in the store for at least 5 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 if they move The display cases cost $2,800 CWB also incurred 6 sales tax on the display cases on addition to their cost Both the display cases and light fixtures have a seven year useful life February 10 CWB made a payment of $5,500 on its accounts payable March 1 CWB invests in a $4,000 3 month treasury bill paying interest of 3 0 March 12 One of the standard bikes sold on February 21 was returned by the customer The bike sold for $400 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 $190 March 24 A customer puts down a deposit of $500 on a high end racing bike that sells for $2,900 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 offers bike tune ups for $80 each CWBs employee is an expert tune ups, taking about one hour per bike for a tune up 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 14 February 36 March 42 CWB has the following purchases and sales of standard bikes during the quarter Date Transaction Quantity Cost per Bike Beginning Inventory 25 $110 January 25 Sale 15 February 8 Purchase 30 $115 February 14 Sale 16 February 27 Sale 15 March 2 Purchase 28 $120 March 17 Sale 20 All purchasers of standard bikes are given the option of buying a bike for $400, or a bike with two years of tune ups for $500 Four of the bikes sold on February 21 st were sold with the tune up option All purchases were made using cash except the March 2nd purchase for which CWB obtained two months credit from the bike supplier CWB took out a five year loan for $10,000 with an interest rate of 12 on January 1, 2018 The loan matures on January 1, 2022 CWB rents its premises for $900 per month, with rent due on the 15 st of the prior month CWB has a business insurance policy, which it purchased for $3,300 on July 1, 2018 The policy runs until June 30, 2019 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 March 31, CWB had $154 of supplies left in the supply room On April 7 received its utilities bill for the first quarter of 2019 $800 The tax rate is 20 Cherry White Bike Company Post Closing Trial Balance 12 31 2018 Account Title Debit Credit Cash $30,100 Store supplies 460 Prepaid rent 900 Prepaid insurance 1,650 Inventory standard bikes (25 bikes) 2,750 Equipment 15,500 Accumulated depreciation equipment $4,350 Accounts payable 8,724 Utilities payable 775 Salaries payable 1,600 Interest payable 1,200 Loans payable 10,000 Capital stock 20,000 Retained Earnings 4,711 Totals $51,360 $51,360 Round all intermediate computations to three decimals Enter your final answer in dollars (no cents) Make your allocation using the standalone selling prices for the tune ups and the bike for 2 1 What is the total amount of the tune up revenue for the three months ending March 31, 2019 2 For one bike sold with the tune up option on February 27th, what is the amount of the transaction price allocated to bike sales Price to tune ups 3 What is the total sales revenue and unearned revenue for bike sales for the three months ending March 31, 2019

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You are presented with a trial balance as of the end of 2018 and must add the transactions and activities that occurred in the first

You are presented with a trial balance as of the end of 2018 and must add the transactions and activities that occurred in the first quarter of 2019 as listed below. You can add accounts to the trial balance, as needed.

January 1: The owners hire Nina Marton to manage the store, paying her a salary of $2,600 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 $1,600 a month, also on the 1^st of the following month. Employees work 40 hours a week.

January 14: Paid utilities for 4^th quarter of 2018, $775.

February 1: Installed new light fixtures and display cases in the leased store. CWB paid $1,900 for the fixtures, $150 for shipping to the store, and $400 to an electrician to install. CWB paid 6% sales tax on the fixtures and shipping in addition to the cost of the fixtures and equipment. It did not pay a sales tax to the electrician.

The landlord gave CWB permission to remove and dispose of the old fixtures. CWB sold the old fixtures for $200. CWB anticipates being in the store for at least 5 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 if they move. The display cases cost $2,800. CWB also incurred 6% sales tax on the display cases on addition to their cost.

Both the display cases and light-fixtures have a seven-year useful life.

February 10: CWB made a payment of $5,500 on its accounts payable.

March 1: CWB invests in a $4,000 3-month treasury bill paying interest of 3.0%.

March 12: One of the standard bikes sold on February 21 was returned by the customer. The bike sold for $400. CWB provided a full refund. CWB’s 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 $190.

March 24: A customer puts down a deposit of $500 on a high-end racing bike that sells for $2,900. 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 offers bike tune-ups for $80 each. CWB’s employee is an expert tune-ups, taking about one hour per bike for a tune-up. 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	14
February	36
March	42

CWB has the following purchases and sales of standard bikes during the quarter+:

Date	Transaction	Quantity	Cost per Bike
Beginning Inventory		25	$110
January 25	Sale	15
February 8	Purchase	30	$115
February 14	Sale	16
February 27	Sale	15
March 2	Purchase	28	$120
March 17	Sale	20

+All purchasers of standard bikes are given the option of buying a bike for $400, or a bike with two years of tune-ups for $500. Four of the bikes sold on February 21^st were sold with the tune-up option.

**All purchases were made using cash except the March 2nd purchase for which CWB obtained two-months credit from the bike supplier.

CWB took out a five-year loan for $10,000 with an interest rate of 12% on January 1, 2018. The loan matures on January 1, 2022.
CWB rents its premises for $900 per month, with rent due on the 15^st of the prior month.
CWB has a business insurance policy, which it purchased for $3,300 on July 1, 2018. The policy runs until June 30, 2019.
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 March 31, CWB had $154 of supplies left in the supply room.
On April 7 received its utilities bill for the first quarter of 2019 - $800.
The tax rate is 20%.

Cherry & White Bike Company

Post-Closing Trial Balance

12/31/2018

*Account Title*	Debit	Credit
Cash	$30,100
Store supplies	460
Prepaid rent	900
Prepaid insurance	1,650
Inventory – standard bikes (25 bikes)	2,750
Equipment	15,500
Accumulated depreciation - equipment		$4,350
Accounts payable		8,724
Utilities payable		775
Salaries payable		1,600
Interest payable		1,200
Loans payable		10,000
Capital stock		20,000
Retained Earnings		4,711
Totals	$51,360	$51,360

Round all intermediate computations to three decimals. Enter your final answer in dollars (no cents). Make your allocation using the standalone selling prices for the tune-ups and the bike for 2.

1. What is the total amount of the tune-up revenue for the three months ending March 31, 2019? 2. For one bike sold with the tune-up option on February 27th, what is the amount of the transaction price allocated to bike sales? Price to tune ups? 3. What is the total sales revenue and unearned revenue for bike sales for the three months ending March 31, 2019?