Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Exercise 4-6 Oriole Company, a ski tuning and repair shop, opened on November 1, 2016. The company carefully kept track of all its cash receipts
Exercise 4-6 Oriole Company, a ski tuning and repair shop, opened on November 1, 2016. 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, 2017. Cash Cash Receipts Payments Issuance of common shares $20,000 Payment to purchase repair shop equipment $9,220 Payments to landlord 1,295 Newspaper advertising payment 340 Uity bill payments 815 Part-time helper's wage payments 2,150 Income tax payment 10,500 Cash receipts from ski and Snowboard repair services 30,100 Subtotas 50,100 24,320 Cash balance 25,780 Totals $50,100 $50,100 The repair shop equipment was purchased on November 1 and has an estimated useful life of 5 years. Lease payments to the landlord are made at the beginning of each month. The payments to the landlord included a security deposit of $185. The part-time helper is owed $490 at April 30, 2017, for unpaid wages. At April 30, 2017, customers owe Oriole Company $475 for services they have received but have not yet paid for. Prepare the April 30, 2017, classified balance sheet. (List Current Assets in order of liquidity.) ORIOLE COMPANY Balance Sheet April 30, 2017 Assets Current Assets Cash $ 25,780 Accounts Receivable 475 Total Current Assets Property, Plant and Equipment Less Total Stockholders' Equity Liabilities and Stockholders' Equity Current Liabilities Salaries and Wages Payable 490 Stockholders' Equity Common Stock 20,000 Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity CE
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started