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\ Search\ File Details\ FIN 3403 - CRN 13321 - Busine...\ Accounting Review\ One of the most important foundations of finance is an understanding of financial statements. Given the data in this scenario, prepare an Income Statement, a Balance Sheet, and a Statement of Retained Earnings.\ For this exercise, we will ignore any impact of taxes or depreciation. Recall your knowledge of accounting for transactions. You may want to use either T-accounts or journal entries to help you develop the statements.\ Good Luck\ It is August 2014. You and your best friend are avid golfers and outstanding scholars. Because of your academic prowess, your expenses for higher education were provided-and you will each receive

$25,000

from a long-lost relative (whom you did not know) that had saved for your education. After graduation, you and your friend decided to start a golf course operation. You find a suitable tract of land for a small 9-hole course. Your plan is to start small and use borrowed equipment. Your first "season" will run from January

1^(st )

through Jun

30^(th )2014

. Over time, you hope to make the course a resort destination for Southwest Florida. Use the following summary of activities to prepare financial statements for the quarter.\ (There may be some specific accounting rules that address the following transactions; however our goal in this exercise is the big picture nature of how transactions affect the financial statements.)\ You each contribute

$25,000

to start the venture.\ You purchase the land for

$40,000

in cash.\ You buy

$500

worth of golf balls from Golf Galaxy (on credit).\ Your fellow graduates play 550 rounds

@$10

each (in cash).\ The FGCU foundation "buys" the course for a one day for a tournament. They promise to pay

$3,000

in the future.\ During the season, you pay

$2700

for salaries and utilities (in cash).\ You pay off

$400

of the golf ball bill.\ You collect

$1,000

from the foundation.\ The county decides they need a portion of your land for a road. You sell them a small parcel for

$22,000

(in cash).\ You decide you had a great quarter and decide to declare and pay a

$2,100

dividend.\ Assets\ Liabilities\ OE\ 4 Pr...us\ (B)\ Dashboard\ Calendar\ To Do\ Notifications\ Inbox

W It is August 2014. You and your best friend are avid golfers and outstanding scholars. Because of your academic prowess, your expenses for higher education were provided-and you will each receive $25,000 from a long-lost relative (whom you did not know) that had saved for your education. After graduation, you and your friend decided to start a golf course operation. You find a suitable tract of land for a small 9-hole course. Your plan is to start small and use borrowed equipment. Your first "season" will run from January 1st through Jun 30th2014. Over time, you hope to make the course a resort destination for Southwest Florida. Use the following summary of activities to prepare financial statements for the quarter. (There may be some specific accounting rules that address the following transactions; however our goal in this exercise is the big picture nature of how transactions affect the financial statements.) 1. You each contribute $25,000 to start the venture. 2. You purchase the land for $40,000 in cash. 3. You buy $500 worth of golf balls from Golf Galaxy (on credit). 4. Your fellow graduates play 550 rounds @$10 each (in cash). 5. The FGCU foundation "buys" the course for a one day for a tournament. They promise to pay $3,000 in the future. 6. During the season, you pay $2700 for salaries and utilities (in cash). 7. You pay off $400 of the golf ball bill. 8. You collect $1,000 from the foundation. 9. The county decides they need a portion of your land for a road. You sell them a small parcel for $22,000 (in cash). 10. You decide you had a great quarter and decide to declare and pay a $2,100 dividend