Boulder Company, a ski tuning and repair shop, opened in November 2009. The company carefully kept track of all its cash receipts and cash payments.

Question

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Boulder Company, a ski tuning and repair shop, opened in November 2009. The company carefully kept track of all its cash receipts and cash payments. The following information is available at the end of the ski season, April 30, 2010.

You learn that the repair equipment has an estimated useful life of 5 years. The company rents space at a cost of $175 per month on a one-year lease. The lease contract requires payment of the first and last months€™ rent in advance, which was done. The part-time helper is owed $420 at April 30, 2010, for unpaid wages. At April 30, 2010, customers owe Boulder Company $350 for services they have received but have not yet paid for.

Instructions
(a) Prepare an accrual-basis income statement for the 6 months ended April 30, 2010.
(b) Prepare the April 30, 2010, classified balancesheet.

Cash Receipts $20,000 Cash Payments Issue of common shares Payment for repair equipment t payments Newspaper advertising payment Utility bills payments Part-time helper's wages payments Income tax payment Cash receipts from ski and $9,200 1,225 375 970 2,600 10,000 32,150 52,150 snowboard repair services Subtotals Cash balance Totals 24,370 27,780 52,150 2 $52,150