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1. Melvin Patel bid for and won a concession to rent bicycles in the local park during the summer. During the month of June, Patel completed the following transactions for his bicycle rental business:

June 2 Began business by placing $7,200 in a business checking account in the name of the company.

3 Purchased supplies on account for $150.

4 Purchased 10 bicycles for $2,500, paying $1,200 down and agreeing to pay the rest in 30 days.

5 Paid $2,900 in cash for a small shed to store the bicycles and to use for other operations.

8 Paid $400 in cash for shipping and installation costs (considered an addition to the cost of the shed) to place the shed at the park entrance.

9 Hired a part-time assistant to help out on weekends at $7 per hour.

10 Paid a maintenance person $75 to clean the grounds.

13 Received $970 in cash for rentals.

17 Paid $150 for the supplies purchased on June 3.

18 Paid a $55 repair bill on bicycles.

23 Billed a company $110 for bicycle rentals for an employee outing.

25 Paid the $100 fee for June to the Park District for the right to operate the bicycle concession.

27 Received $960 in cash for rentals.

29 Paid the assistant $240.

30 Made a cash withdrawal of $500.

1. Prepare journal entries using NAC
2. Prepare Income statement from the results of transactions
3. Prepare Balance sheet
4. Interpret the results of the statements?

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