Solved by verified expert :Best Bicycles Inc.Accounting Cycle CaseInstructionsThe objective of this accounting cycle case is to prepare and post December journal entries to Best Bicycle, Inc.’s general ledger, prepared a trial balance, balance sheet, and income statement as of December 31, 2011. Then you are to prepare and post a closing entry and a post closing trail balance,You will note this excel worksheet has various tabs at the bottom to the page. Each tab represents a separate worksheet. To access each worksheet, click on the desired tab. To start this project, go to the transactions tab and prepare journal entries to record each of these transactions. Rerecord each journal entry on the journal entry tab.Next, post the journal entries to the general ledger located on the general ledger tab. After all entries have been posted to the general ledger, prepare a trail balance on the trial balance tab. Be sure the trial balance is in balance, that the total debits equal the total credits. Do not proceed to the next step until the trial balance balances,Prepare a balance sheet and income statement from the trial balance using the balance sheet and income statement tabs, Remember that you will need to include the net income or loss from your income statement in the retained earnings balance on the balance sheet for it to balance.Next prepare and post closing entries to the general ledger.The final step is to prepare a post closing trail balance. This should be done on the post closing trial balance tab. This trial balance should also be balanced. Once you have done this and see that it balances, you have completed the project. Congratulations.Best Bicycles Inc December 2011 Transactions Date Description1-Dec Purchased 5 bicycles for resale for $4,500 terms 2/10 net 30. 4-Dec Paid Decembers rent in the amount of $1,500. 4-Dec Sold bicycle for $2,500 for cash. Cost of the bible was $1,800. 5-Dec Paid vendor for the bicycles purchased on December 1 15-Dec Paid wages in the amount of $450 16-Dec Collected accounts receivable in the amount of $750. 18-Dec Sold bicycle for $1,900. Received $900 in cash with the balance due in 30 days. The cost of this bicycle was $1,200. 20-Dec Paid Decembers interest on note payable in the amount of $50. 31-Dec Wages due on December 31 in the amount of $450 not paid until January 2 of the following year. 31-Dec Recorded December depreciation on equipment in the amount of $75. 31-Dec Took a physical inventory and found the cost of the remaining unsold inventory was $25,821 31-Dec Made a $1,000 principal payment on the note payable. 31-Dec Review accruals and deferrals for any required adjustment
