Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I need help with the last 2 lines. The amount for owners equity and the last line. William Mark achieved one of his life-long dreams
I need help with the last 2 lines. The amount for owners equity and the last line.
William Mark achieved one of his life-long dreams by opening his own business, The Cullumber Shack Driving Range, on May 1, 2020. He invested $19,650 of his own savings in the business. He paid $6,700 cash to have a small building constructed house the operations and spent $765 on golf clubs, golf balls, and yardage signs. Mark leased 4 acres of land at a cost of $1,030 per month. (He paid the first month's rent in cash.) During the first month, advertising costs totaled $765, of which $160 was unpaid at the end of the month. Mark paid his three nephews $435 for retrieving golf balls. He deposited in the company's bank account all revenues from customers ($4,735). On May 15, Mark withdrew $765 in cash for personal use. On May 31, the company received a utility bill for $120 but did not immediately pay it. On May 31, the balance in the company bank account was $14,085. Mark is feeling pretty good about results for the first month, but his estimate of profitability ranges from a loss of $5,565 to a profit of $1,620. (a1) Prepare a balance sheet at May 31, 2020. (List Assets in order of liquidity.) Cullumber Shack Driving Range Statement of Financial Position At May 31, 2020 Assets Cash 14085 Buildings 6700 Equipment 765 Total Assets 21550 Liabilities and Equity Utilities Payable 120 Assets Cash 14085 Buildings 6700 Equipment 765 Total Assets 21550 Liabilities and Equity Utilities Payable 120 160 Advertising Payable Owners' Equity X Owners' Capital 19650 Total Liabilities Equipment 765 Total Assets 21550 ities and Equity 120 160 Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Property, Plant and Equipment Stockholders' Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities & Equity Total Long-term Investments Total Long-term Liabilities Total Property, Plant and Equipment Total Stockholders' Equity 19650Step 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