50.1K
Verified Solution
Link Copied!
Bike World Inc, wholesales a line of custom road bikes. Bike World's inventory, as of November 30, 2014, consisted of 22 mountain bikes costing $1,650 each. Bike World's trial balance as of November 30 appears as follows:
List of Debits:
Cash: $9,150
Accounts Receivable: $12,300
Inventory: $36,300
Supplies: $900
Office Equipment: $18,000
Dividends: $4,250
Sales Returns and Allowances: $1,700
Sales Discounts: $1,275
Cost of goods sold: $78,900
Sales Commissions Expense: $11,300
Office Salaries Expense: $7,425
Office Rent Expense: $5,500
Shipping Expense: $3,200
List of Credits
Accumulated Depreciation, office equipment: $3,000
Accounts Payable $1,325
Note Payable, Long-term: $5,000
Common Stock: $8,500
Retained Earnings: $21,425
Sales Revenue: $150,950
Total for debit both equal to $190,200
During the month of December 2014 Bike World, Inc, had the following transactions:
Dec 4 Purchased 10 bikes for $1 ,575 each from
Truspoke Bicycle, Co., on account. Terms, 2/15, n/45, FOB destination.
6 Sold 14 bikes for $2,100 each on account to Allsport, Inc. Terms, 3/10, n/30, FOB destination.
8 Paid $375 freight charges to deliver goods to Allsport, Inc.
10 Received $7,200 from Cyclemart as payment on a November 17 sale. Terms were n/30.
12 Purchased $450 of supplies on account from Office Express.
Terms, 2/10, n/30, FOB destination.
14 Received payment in full from Allsport, Inc., for the Dec 6 sale. 16 Purchased 15 bikes for $1,600 each from Truspoke
Bicycle, Co., on account. Terms, 2/15, n/45, FOB destination. 18 Paid Truspoke Bicycle, Co., the amount due from the December 4 purchase in full.
19 Sold 18 bikes for $2,125 each on account to
Columbia Cycle, Inc. Terms, 2/15, n/45, FOB shipping point. 2.0 Paid tor the supplies purcnaseo on December 12.
22 Paid sales commissions, $1,850.
30 Paid current month's rent, $500.
Requirements
Prepare an unadjusted trial balance as of December 31, 2014.
Answer & Explanation
Solved by verified expert
