Use the information provided in Problem P3-12 about We’ve Got Wheels, Inc. (Wheels) to do the following:

a. Prepare all necessary journal entries until September 10, 2014.

b. Prepare T-accounts and post each journal entry to the appropriate T-account.

c. Prepare and post adjusting journal entries to their appropriate T-accounts. Adjusting entries are needed for the bikes, inline skates and equipment, and the permit.

d. Prepare a trial balance as of September 10, 2014.

e. Prepare a balance sheet as of September 10, 2014 and an income statement for the period ended September 10, 2014 from your spreadsheet. Prepare the closing journal entry and post the closing entry to the appropriate T-accounts.

f- Prepare a trial balance as of September 10, 2014, after the closing entry has been prepared.

g- Compare Wheels’ net income with the amount of cash that was generated by the business. Which is a better indicator of how Wheels did? Why are they different?
(When looking at the cash flow, consider the cash flows after the owners made their initial $18,000 investment.)
h. If Wheels’ owners asked you evaluate the financial statements for them, what would you be able to tell?