OBOOK Transaction Analysis and Financial Statements Just Rolling Along Inc. was organized on May 1 by two college students who recognized an opportunity to make money while spending their days at a beach along Lake Michigan. The two entrepreneurs plan to rent bicycles and in-line skates to weekend visitors to the lakefront. The following transactions occurred during the first month of operations: May 1: Received contribution of $11,500 from each of the two principal owners of the new business in exchange for shares of stock May 1: Purchased ten bicycles for $260 each on an open account. The company has 30 days to pay for the bicycles. May 5: Registered as a vendor with the city and paid the $20 monthly fee. May 9: Purchased 30 pairs of in-line skates at $110 per par, 30 helmets at $45 each, and 30 sets of protective gear (knee and elbow pads and wrist guards) at $40 per set for cash. May 10: Purchased $100 in miscellaneous supples on account. The company has 30 days to pay for the supplies, May 15: Paid $160 bill from local radio station for advertising for the last two weeks of May. May 17: Customers rented in-line skates and bicycles for cash of $1,690. May 24: Billed the local park district $1,100 for in-line skating lessons provided to neighborhood children. The park district is to pay one-half of the bill within five working days and the rest within 30 days. May 29: Received 50% of the amount billed to the park district. May 30: Customers rented in-line skates and bicydes for cash of $2,600. May 30: Paid wages of $180 to a friend who helped over the weekend. May 31: Paid the balance due on the bicycles Required: 1. Complete the table below to summarize the preceding transactions as they affect the accounting equation. Enter transactions in the same order as presented above. If an account is unaffected by a transaction, enter "O". Use the minus sign to indicate decreases. JUST ROLLING ALONG INC. TRANSACTIONS FOR THE MONTH OF MAY Assets Liabilities Stockholders' Equit Date Cash Accounts Receivable Equipment Supplies Accounts Payable Capital Stock Retained E May 1 5 May 1 Balances May 5 Balance May 9 Balance May 10 Balance May 15 Balance May 17 eBook Calculator Balance May 24 Balance May 29 Balance May 30 Balance May 30 Balance May 31 all Balance Total Assets Total liabilities and stockholders' Equity! 2. Prepare an income statement for the month of May. Just Rolling Along Inc. Income Statement For the Month of May Revenues: Total Revenues Expenses: o Total Expenses 3. Prepare a classified balance sheet at May 31. Just Rolling Along Inc. Balance Sheet May 31 Assets Current assets: I- Total current assets Property, plant, and equipment: O OD Total assets Liabilities and Stockholders' Equity Current liabilities: Total stockholders' equity Total abilities and stockholders' equity
