Miner Bicycle Stoee was incorporated in 2010. All shares of common stock are own
ID: 2330325 • Letter: M
Question
Miner Bicycle Stoee was incorporated in 2010. All shares of common stock are owned by is owned by Mr. Miner. The following is the balance of accounts of Miner Bacycle Stone on Janwary 1, 2018 5,000 Common Stock (35 par valc Company is using LIFO, perpetual method for inventory valuation Oe Jamuary 1, 2018, the Miner Bicycle Store had an inventory of 30 ten-spoed bicycles on hand cach had cost $150. During the month of January, the following transactions occurred 1. In oeder to raise capital, Mr. Miner issued and sold 6000 shares of $12 par value, 10%, preferred stocks to her mother-in-law. Since shares of owmership are prcficrmed stock te mother in-law is not going to able to interfere with the administration of the company as prelered stockholders do not have voting right. 2. Mr. Miner raised additional capital by bomowing $20,000 from Ciay Bankfor 3 years by signing a promissory note th an annual merest rate of 9% 3. Purchased equipment from Washers Wholesale, $6,200 Paid in cash 4. Purchased a building for use as warehouse by paying $60,000 cash 5. Purchased 10 bicyeles at a cost of $160 cach from the Lyoes Bicycle Company, terms 2/10, n/30 FOB Shipping Point 6. Received credit from the Lyons Bicycle Company for the return of 2 defective bicycles 7. Paid Lyes Bicycle Company in full, within the discount period 8. Purchased $700 supplies on account 9, Sold 25 bicycles to Team America for $450 each, terms 2/10, s/30 FOB Destination 10.Paid SIO0toship the bicycles in transaction # 8 to Team Antica. I1. Issued a credit memo to Team America for the return of a bicycle 2. Paid the rent for store for the month, $1,000 13. Sold 8 bicycles to Team Georgia for $420 cach in cash 14. Paid employees for hours worked during the month, $1,500 15. Collected from Team America, withim discount pcriod 16. Recorded estimated $400 depreciation on equipment 17. A physical inventory revealed that only $120 of supplies was lefh 18. Recorded accrued interest on the notc owed to City Bank transaction #2 for one month (using Simple Interest Method). 19.Collected $80 from bank on interest.Explanation / Answer
1 General Ledgers as on 1 January:-
Cash A/C
Accounts Receivable
Merchandise Inventory
Equipment A/C
Accumulated Depreciation A/C
Accounts Payable A/C
Common Stock A/C
2. Jouranal Enteries: -
In the books of M/s Miner Bicycle
Journal
3. General Ledgers:
Bank & Cash A/C
Particluars Debit Particulars Credit To bal B/d 5,0000