The following transactions apply to Bob's Bike Shop for 2016, its first year of operations: 1. Acquired

Question:

The following transactions apply to Bob's Bike Shop for 2016, its first year of operations:
1. Acquired $35,000 cash from the issue of common stock.
2. Acquired $9,600 of merchandise from Bob Hall, the owner, who had acquired the merchandise prior to opening the shop. Issued to Bob in exchange for the merchandise inventory.
3. Purchased $85,000 of inventory on account.
4. Paid $2,800 for radio ads.
5. Sold inventory for $165,000 cash.
6. Paid $28,000 in salary to a part-time salesperson.
7. Paid $65,000 on (see Event 3).
8. Physically counted inventory, which indicated that $28,500 of inventory was on hand at the end of the accounting period.
a. Record each of these transactions in general journal form using the periodic method.
b. Post each of the events to ledger T-accounts and the necessary closing entries at the end of 2016, and post them to the appropriate T-accounts.
c. Prepare an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for 2016.
d. Prepare e. Prepare a post-closing trial balance.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...