1)Two local golf pros, Nick L Dime and his wife Penny Pincher recently opened a new golf course called Par Busters, Inc They invested $10,000 of their cash savings, and received $10,000 of common stock on June 1 During June, the firm had the following transactions Constructed a caddy shack for $4,000 cash Bought golf clubs for $800 cash Leased land for $1,000 per month and paid the first month's rent Incurred $750 of advertising expenses for June Of that amount, $600 was paid up front, but $150 had not been paid by the end of the month Paid members of the high school golf team $400 to retrieve golf balls Deposited all fees from customers in the corporate bank account Paid a cash dividend of $700 to Nick and Penny Received a $100 utility bill on June 30, but did not pay it until July Determined that the firm bank balance was $8,650 on June 30 Question Nick thinks that the business had $3,200 net income in June because the beginning balance in stockholders' equity was $10,000 on June 1, but the ending balance was $13,200 on June 30 What is wrong with his logic Question a)Determine the actual fees earned and actual operating income or loss for Par Busters in June (Hint You can solve this problem in several ways 1) by considering the cash inflows and outflows 2) by preparing a retained earnings statement and an income statement or 3) by using transactional analysis )

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1)Two local golf pros, Nick L. Dime and his wife Penny Pincher recently opened a new golf course called Par-Busters, Inc . They invested $10,000

1)Two local golf pros, Nick L. Dime and his wife Penny Pincher recently opened a new golf course called Par-Busters, Inc. They invested $10,000 of their cash savings, and received $10,000 of common stock on June 1.During June, the firm had the following transactions:

Constructed a caddy shack for $4,000 cash.
Bought golf clubs for $800 cash.
Leased land for $1,000 per month and paid the first month's rent.
Incurred $750 of advertising expenses for June.Of that amount, $600 was paid up front, but $150 had not been paid by the end of the month.
Paid members of the high school golf team $400 to retrieve golf balls.
Deposited all fees from customers in the corporate bank account.
Paid a cash dividend of $700 to Nick and Penny.
Received a $100 utility bill on June 30, but did not pay it until July.
Determined that the firm bank balance was $8,650 on June 30.

Question: Nick thinks that the business had $3,200 net income in June because the beginning balance in stockholders' equity was $10,000 on June 1, but the ending balance was $13,200 on June 30.What is wrong with his logic?

Question:a)Determine the actual fees earned and actual operating income or loss for Par-Busters in June. (Hint: You can solve this problem in several ways: 1) by considering the cash inflows and outflows; 2) by preparing a retained earnings statement and an income statement; or 3) by using transactional analysis.)