One month at Brightwater Bike Repair

Mateo Ruiz has just opened Brightwater Bike Repair, a small corporation that repairs and services bicycles. He kept every receipt, invoice and bank record for July but has never kept books. You will run the whole accounting cycle for his first month: record and post every transaction, make the month-end adjustments, prepare the financial statements, close the books, and write him a short note on what July’s numbers say.

Brightwater is fictional, and so is every figure. It works like Lantern Coffee in the lessons: a service business on the accrual basis, with parts treated as supplies. Its chart of accounts is a little different, so read the account names carefully.