During May 2021 the following activities occurred: 2021/5/1 Jackson's Biking issued stock to Beff Jezos for his contribution of $200,000. 2021/5/1 Jackson's Biking purchased $75,000 of bikes (inventory) with cash. 2021/5/1 $24,000 was paid in advance for 1 year of rent. 2021/5/1 Jackson's Biking borrowed $30,000 on a 6 year, 6% annual interest loan from Wells Fargo. 2021/5/2 Purchased office supplies costing $4,000 on account. 2021/5/3 Received and paid a bill for running a newspaper advertisement for $225. 2021/5/4 Sold a one of a kind bike worth $800 to Matthew White for $12,500 cash. 2021/5/5 Purchased computers for business use with $10,000 cash. 2021/5/6 Purchased bike helmets (inventory) for $2,000 on account. 2021/5/8 Paid cash for half of supplies purchased on 5/2/21. 2021/5/9 Sold $3,000 of bikes to Emily Kim for $8,000 on account with terms 2/10, n/30. 2021/5/10 Jackson's Biking established a petty cash fund in the amount of $600. 2021/5/11 Sold $5,000 of bikes to Jessie Donovan for $12,000 on account with terms 2/10, n/30. 2021/5/12 Emily Kim paid Jackson's Biking for the bikes purchased on 5/9/21. 2021/5/13 An analysis of inventory indicated that some bikes were obsolete (i.e., old and outdated) and recorded above market value. An inventory write down of $900 is required. 2021/5/14 Jackson's Biking sold 3 gift cards for $300 each. No merchandise was sold at this time. 2021/5/16 Sold a bike and helmet worth $500 total to Hunter Long for $1,800 cash. 2021/5/20 Received $3,000 from a customer for 3 bikes to be delivered in June. 2021/5/24 Jessie Donovan paid Jackson's Biking for purchases on 5/11/21. 2021/5/25 Returned $900 of helmets back to their supplier, has not received the refund yet. 2021/5/26 Hunter Long returned the bike and helmet purchased on 5/16/21. Jackson's Biking issued a full cash refund 2021/5/27 Sold $500 of bike tires to Sarah Row for $700 on account. 2021/5/29 Petty Cash was replenished for $400 to cover a promotion made at a Mariners game (advertising expense). 2021/5/31 Paid wages to employees for May totaling $15,000. 2021/5/31 Paid dividends totaling $450. The following data are available for adjusting entries: 2021/5/31 Record rent expense for May. 2021/5/31 Record monthly interest expense on the Wells Fargo loan. 2021/5/31 Records show customers used $500 of gift cards to purchase inventory with a value of $300. 2021/5/31 Jackson's Biking had a water bill of $1,700 unpaid at end of the month. 2021/5/31 Record depreciation of computer equipment for $1,000. 2021/5/31 At the end of the month, $1,800 of supplies remain in the supply closet. 1. income statement 2. statement of retained earnings 3. T accounts

During May 2021 the following activities occurred: 2021/5/1 Jackson's Biking issued stock to Beff Jezos for his contribution of $200,000. 2021/5/1 Jackson's Biking purchased $75,000 of bikes (inventory) with cash. 2021/5/1 $24,000 was paid in advance for 1 year of rent. 2021/5/1 Jackson's Biking borrowed $30,000 on a 6 year, 6% annual interest loan from Wells Fargo. 2021/5/2 Purchased office supplies costing $4,000 on account. 2021/5/3 Received and paid a bill for running a newspaper advertisement for $225. 2021/5/4 Sold a one of a kind bike worth $800 to Matthew White for $12,500 cash. 2021/5/5 Purchased computers for business use with $10,000 cash. 2021/5/6 Purchased bike helmets (inventory) for $2,000 on account. 2021/5/8 Paid cash for half of supplies purchased on 5/2/21. 2021/5/9 Sold $3,000 of bikes to Emily Kim for $8,000 on account with terms 2/10, n/30. 2021/5/10 Jackson's Biking established a petty cash fund in the amount of $600. 2021/5/11 Sold $5,000 of bikes to Jessie Donovan for $12,000 on account with terms 2/10, n/30. 2021/5/12 Emily Kim paid Jackson's Biking for the bikes purchased on 5/9/21. 2021/5/13 An analysis of inventory indicated that some bikes were obsolete (i.e., old and outdated) and recorded above market value. An inventory write down of $900 is required. 2021/5/14 Jackson's Biking sold 3 gift cards for $300 each. No merchandise was sold at this time. 2021/5/16 Sold a bike and helmet worth $500 total to Hunter Long for $1,800 cash. 2021/5/20 Received $3,000 from a customer for 3 bikes to be delivered in June. 2021/5/24 Jessie Donovan paid Jackson's Biking for purchases on 5/11/21. 2021/5/25 Returned $900 of helmets back to their supplier, has not received the refund yet. 2021/5/26 Hunter Long returned the bike and helmet purchased on 5/16/21. Jackson's Biking issued a full cash refund 2021/5/27 Sold $500 of bike tires to Sarah Row for $700 on account. 2021/5/29 Petty Cash was replenished for $400 to cover a promotion made at a Mariners game (advertising expense). 2021/5/31 Paid wages to employees for May totaling $15,000. 2021/5/31 Paid dividends totaling $450. The following data are available for adjusting entries: 2021/5/31 Record rent expense for May. 2021/5/31 Record monthly interest expense on the Wells Fargo loan. 2021/5/31 Records show customers used $500 of gift cards to purchase inventory with a value of $300. 2021/5/31 Jackson's Biking had a water bill of $1,700 unpaid at end of the month. 2021/5/31 Record depreciation of computer equipment for $1,000. 2021/5/31 At the end of the month, $1,800 of supplies remain in the supply closet. 1. income statement 2. statement of retained earnings 3. T accounts

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 2EA: Jada Company had the following transactions during the year: Purchased a machine for $500,000 using...

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During May 2021 the following activities occurred:

2021/5/1	Jackson's Biking issued stock to Beff Jezos for his contribution of $200,000.
2021/5/1	Jackson's Biking purchased $75,000 of bikes (inventory) with cash.
2021/5/1	$24,000 was paid in advance for 1 year of rent.
2021/5/1	Jackson's Biking borrowed $30,000 on a 6 year, 6% annual interest loan from Wells Fargo.
2021/5/2	Purchased office supplies costing $4,000 on account.
2021/5/3	Received and paid a bill for running a newspaper advertisement for $225.
2021/5/4	Sold a one of a kind bike worth $800 to Matthew White for $12,500 cash.
2021/5/5	Purchased computers for business use with $10,000 cash.
2021/5/6	Purchased bike helmets (inventory) for $2,000 on account.
2021/5/8	Paid cash for half of supplies purchased on 5/2/21.
2021/5/9	Sold $3,000 of bikes to Emily Kim for $8,000 on account with terms 2/10, n/30.
2021/5/10	Jackson's Biking established a petty cash fund in the amount of $600.
2021/5/11	Sold $5,000 of bikes to Jessie Donovan for $12,000 on account with terms 2/10, n/30.
2021/5/12	Emily Kim paid Jackson's Biking for the bikes purchased on 5/9/21.
2021/5/13	An analysis of inventory indicated that some bikes were obsolete (i.e., old and outdated) and recorded above market value. An inventory write down of $900 is required.
2021/5/14	Jackson's Biking sold 3 gift cards for $300 each. No merchandise was sold at this time.
2021/5/16	Sold a bike and helmet worth $500 total to Hunter Long for $1,800 cash.
2021/5/20	Received $3,000 from a customer for 3 bikes to be delivered in June.
2021/5/24	Jessie Donovan paid Jackson's Biking for purchases on 5/11/21.
2021/5/25	Returned $900 of helmets back to their supplier, has not received the refund yet.
2021/5/26	Hunter Long returned the bike and helmet purchased on 5/16/21. Jackson's Biking issued a full cash refund
2021/5/27	Sold $500 of bike tires to Sarah Row for $700 on account.
2021/5/29	Petty Cash was replenished for $400 to cover a promotion made at a Mariners game (advertising expense).
2021/5/31	Paid wages to employees for May totaling $15,000.
2021/5/31	Paid dividends totaling $450.

The following data are available for adjusting entries:

2021/5/31	Record rent expense for May.
2021/5/31	Record monthly interest expense on the Wells Fargo loan.
2021/5/31	Records show customers used $500 of gift cards to purchase inventory with a value of $300.
2021/5/31	Jackson's Biking had a water bill of $1,700 unpaid at end of the month.
2021/5/31	Record depreciation of computer equipment for $1,000.
2021/5/31	At the end of the month, $1,800 of supplies remain in the supply closet.

1. income statement 2. statement of retained earnings 3. T accounts

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