Problem Chapter 1 Cumberland City Cycles, Incorporated (CCC) rents bicycles of all kinds for use on the biking
paths up and down the Cumberland River. The owner of CCC, Robert Sanders, Incorporated
the business on June 1, 2021 and the following events occurred during the month of June.
June
1 The company received $50,000 from Robert Sanders and issued 5,000 shares of
common stock
2 Purchased various bicycles from Schwinn for $5,000 on account
3 Leased a small storefront on the Cumberland River and paid the first month's rent of
$1,000 in cash.
4 Paid $50 cash to Star Media for an advertisement about their grand opening on local
radio station
16 Earned $450 cash for bike rentals during the first half of the month of June.
20 Received a bill for $75 for cell phone service,
22 Paid $150 on account to Schwinn for the purchase on June 2
25 Hired a part-time worker at $15 per hour. Payment will be made to the worker every
two weeks, starting on July 9.
27 Rented bicycles to a local youth soccer team for the day on account, $75.
28 Paid $100 cash for utilities for the month of June.
29 Paid $50 cash in dividends to stockholder,
30 Earned $950 cash for bike rentals during the second half of the month of June.
Required:
a) Open the file Problem 1 Excel Template.
b) Record the transactions on the accounting equation, using the Problem 1 Excel
Template. Use the day as the transaction number,
c) As you enter the transactions, the template will automatically complete the values for
column totals and financial statement amounts,
d) Review the formulas in the cells to see how they work, but do not change them.
e) Save the completed Excel file.
1) Post your file in the Assignment "Problem 1 - Chapter 1.".