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Transaction Analysis and Financial Statements Best Rolling Along inc. was organized on May 1 by two college students who recognised an opportunity to make money while spending their days at a beach along Lake Michigan. The two entrepreneurs plan to rent bicycles and in-line skates to weekend visitors to the lakefront. The following transactions occurred during the first month of operations: May 1 Received contribution of $13,000 from each of the two principal cers of the new business in exchange for shares of stock May 13 Purchased ten bicycles for $130 each on an open account. The company has 30 days to pay for the bicycles May 31 Registered as a vendor with the city and paid the $25 monthly fee. May 9: Purchased 30 pairs of in-line skates at $120 per pai 30 helmets at $50 each, and 30 sets of protective gear (knee and elbow pads and wrist guards) at $45 per set for cash. May 10. Purchased $105 in miscellaneous supplies on account. The company has 30 days to pay for the supplies. May 15: Paid $120 bill from local radio station for advertising for the last two weeks of May. May 17: Customers rented in-line skates and bicycles for cash of $1.670. May 24: Biled the local park district $1.300 for in-line skating lessons provided to neighborhood children. The part district is to pay one-half of the Mal within five working days and the rest within 30 days May 29: Received 50% of the amount billed to the park district. May 30: Customers rented in-line skates and bicycles for cash of $3.300. May 30: Paid wages of $150 to a friend who helped over the weekend. May Paid the balance due on the bicydes. Required: 1. Complete the table below to sure the preceding actions as they affect the cutting in the header as presented above If an account is unaffected by a traconenter". Use the minus sign to indicate decreases JUST ROLLING ALONG INC. TRANSACTIONS FOR THE MONTH OF MAY Assets Liabilities Stockholders' Equity Accounts Retained Date Cash Equipment Accounts Payable Receivable Supplies Capital Stock Earnings $ May 1 07 o 26,000 0 25,000 2. Prepare an income statement for the month of May. Just Rolling Along Inc. Income Statement For the Month of May Revenues: Rental fees X Lessons 1,300 Total Revenues Expenses: Registration fee 25 Advertising Salaries and wages expense 120 150 Total Expenses 295 Net income May 1: Received contribution of $13,000 from each of the two principal owners of the new business in exchange for shares of stock May 1: Purchased ten bicycles for $330 each on an open account. The company has 30 days to pay for the bicycles. May 5: Registered as a vendor with the city and paid the $25 monthly fee. May 9: Purchased 30 pairs of in-line skates at $120 per pair, 30 helmets at $50 each, and 30 sets of protective gear (knee and elbow pads and wrist guards) at $45 per set for cash. May 10: Purchased $105 in miscellaneous supplies on account. The company has 30 days to pay for the supplies. May 15: Paid $120 bill from local radio station for advertising for the last two weeks of May. May 17: Customers rented in-line skates and bicycles for cash of $1,870. May 24: Billed the local park district $1,300 for in-line skating lessons provided to neighborhood children. The park district is to pay one-half of the bill within five working days and the rest within 30 days. May 29: Received 50% of the amount billed to the park district. May 30: Customers rented in-line skates and bicycles for cash of $3,300. May 30: Paid wages of $150 to a friend who helped over the weekend May 31: Paid the balance due on the bicycles.

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