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P1-3A On May 1, Jeff Wilkins started Skyline Flying School, a company that provides flying lessons, by investing $45,000 cash in the business

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P1-3A On May 1, Jeff Wilkins started Skyline Flying School, a company that provides flying
lessons, by investing $45,000 cash in the business. Following are the assets and liabilities of the
company on May 31, 2010, and the revenues and expenses for the month of May.

Cash $ 5,600 Notes Payable $30,000
Accounts Receivable 7,200 Rent Expense 1,200
Equipment 64,0a00 Repair Expense 400
Lesson Revenue 7,500 Fuel Expense 2,500
Advertising Expense 500 Insurance Expense 400
Accounts Payable 800

Jeff Wilkins made no additional investment in May, but he withdrew $1,500 in cash for personal use.

Instructions

(a) Prepare an income statement and owner’s equity statement for the month of May and a balance
sheet at May 31.

(b) Prepare an income statement and owner’s equity statement for May assuming the following
data are not included above: (1) $900 of revenue was earned and billed but not collected at
May 31, and (2) $1,500 of fuel expense was incurred but not paid.

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