Board Rentals was started on January 1, , by with an investment of $50000 cash. The company rents out snowboards and related gear from a small store. During the first 11 months, made additional investments of $20000 and borrowed $40000 from the bank. He did not withdraw any funds. The balance sheet accounts at November 30, , are as follows: Cash. . . . . . . . . . . . . . . $45,000 Accounts Receivable. . 15,000 Rental Gear. . . . . . . . . 32,000 Rental Snowboards. . . 48,000 Store Equipment. . . . . 30,000 Accounts Payable. . . . 12,000 Note Payable. . . . . . . . 40,000 R. Terrace, Capital. . . . 118,000 December 1 The business paid $5,000 for the month's rent on the store space. 4 The business signed a one-year lease for the rental of additional store space at a cost of $4,000 per month. The lease is effective January 1. The business will pay the first month's rent in January. 6 Rental revenues for the week were: Gear, $4,000; Boards, $10,000. Three-quarters of the fees were paid in cash and the rest on account. 10 The business paid the accounts payable from November 30, 2022. 12 The business purchased gear for $20,000 and boards for $40,000, all on account. 13 Rental revenues for the week were: Gear, $7,000; Boards, $14,000. All the fees were paid in cash. 15 The company received payment for the accounts receivable owing at November 30, 2022. 18 The company purchased store equipment for $10,000 by paying $3,000 cash with the balance due in 60 days. 20 Rental revenues for the week were: Gear, $8,000; Boards, $14,000. Half the fees were paid in cash and half on account. 21 Terrace withdrew $7,000. 24 The company paid the balance owing for the purchases made on December 12. 27 Rental revenues for the week were: Gear, $6,000; Boards, $10,000. All the fees were paid in cash. 27 The company received payment for rental fees on account from December 6. 31 The company paid its employees for the month of December. The total wages expense was $10,000. 31 Terrace paid the utility bill for the month of December, which was $4,000. 1. What is the total net income earned by the business over the period of January 1, , to November 30, ? 2. Analyze the effects of the December transactions on the accounting equation of Board Rentals. Include the account balances from November 30, . 3. Prepare the income statement for Board Rentals for the month ended December 31, . 4. Prepare the statement of owner's equity for Board Rentals for the month ended December 31, . 5. Prepare the balance sheet for Board Rentals at December 31, . 6. has expressed concern that although the business seems to be profitable and growing, he constantly seems to be investing additional money into it. Prepare a reply to his concerns. pop-up content ends