Prepare Journal Entries, an income statement, a statement of owners equity, a balance sheet, and a cash flows statement.
I 1. Ron Hopkins established CUCTC and pruchased 1,000 shares of its stock, buying all 1000 shaces for $60,000, thns becoming the fonades and sole ounes of the company. 2. At the beginning of the year, Hopkins pchased, with $22,000 cash, gality cross-conatry sis, ropes snowshoes, and backpacks, all of which wonld be used on the vatious toues for at least a couple of years 3. On Jannacy 2, Hopkins paid $9,000 fos 18 months of business liability insueance 4. Hoplns paid $2,000 to a local fim foe setting p the compay 5. Hopkins acquiced eight used snowmobiles, paying $20,000 eash and signing a $30,000 note dated Febenacy that was payable to the High Mesa Epment Company. The note's peincipal was dne in full on its fos- year annme sary date. It caused an annnal ates est ate of 4%, and atesest mas omed at the end of each month High Mesa had insisted on a dicect ban: acconat withdcsal accangement with CUCTC. 6. Recng payments to subeontracted tone grides and helpers totaled $52,000 for the year 7 The check segister showed a total of $165,600 collected from enstomecs fog vanons tous. All tones wece pcepaid infl at the time of cesecration As of December 31, Nocis ascectained that $3,600 of the$165,600 . At the end of every month thee had been a $3,000 check disbnucsed to Hopkins with salary" as the 9. At the beginning of erecy month, there had been a $1,500 check issned for the tental of the ban from 10. These wece checks made ont to Ute Recceational Eqipment Inc. for ATV centals seveal times ding the was for trips schedrled eatly in the new year. notation which CUCTC operated year. For the year, those checks totaled $19,300. 11. Expendimees for fuel, food, and miscellaneons smpplies nsed on the tones totaled $$,000 fox the year. 12 Cash expendites fos cetaal pcovisions stocked in the bam's front shottcoom and available foe sale to tonme 13. Thece had been a $10,000 Apcil check made payable to Todd's Monatain Bikes. The cefecence line in the 14. Hoplans had paid $ 1,600 twice for an ad incegional quart ehr ontdoor adrentue magazine. The first customecs and others who wallked in totaled $14,700. registes noted, "one-qnarter partnership intesest check was dated June 1. The second check was dated December 1 and was for the magazines December 15. Retail mecchandise sales made and collected totaled $23,000. 16. In a December e-mail exchange with one of CUCTC's main snppliers of miscellaneous retail psovisions arailable for pruchase by tone enstomers (eg, watespcoof disposable camecas, T-shirts, canyon maps, and framed photos), Nocas noted that the smpplies had begua ganting 30-day ccedit teams to CUCTC. The e mail staing had confimed ceceipt of $1,200 worth of supplies by CUCTC on Decembes 20, and the check eegister had shown no related payment by year-end 17These was a tibboned certificate, dated November 30, declaring CUCTC as one of the egion s most promising ontdoor-based start-np companies of th a It as from the Westen Colorado Eaviconmental Alliance. In Hopkins's handwciting and nest to a saniley face, Noccis saw a note, Yeah, me. My stock jnst got moce aable 18. Norember mnst have been a slow month for CUCTC. Noens fonnd a handwuitten note that Hopkins had made: Took fie college buddies on a fone-day ton...no other business that week. we had a blast...no life-theeatening injes. They will pay $1,000 each in the aew yeas aftes they receit* their yeac-end boanses. 19. Thece was a letter fzoam a Missona law fem notifying Hopkins that a enstomer was sning CUCTC for medical bills and negligence celated to a biking accident on one of the sanmer tones. The sit was seeling $250,000. Nocas had asked Hopkins abont this Oh, that was a cany gu who gnoced ons instonctions and cantions when we had to natrigate throngh a bonlder Eeld in Diablo Canon. He took a spill and bolae his am He was a pain in the 20. There was one moxe letter in the box. This one was from Ute Recreational Egnipment Ine. infocming Hopkins that he co d prochase fr" of the ATVs he had fequently used fos $5,000 each. Hoplaas had noted in the margin nades a To Do" heades, "Sonds appealing, send letter of intent to accept the offec." No snch letter had been sent by the end of the yeat. 21. Nois had cequested that on December 31, Hopkins take a tally of the cetail merchandise on hand and available for sale to enstomess and the genecal pubic. Nouis xetcieved the e-mail Hopkins had sent him indicating that $900 of etail pcovisions wexe on hand on Decembes 3! I 1. Ron Hopkins established CUCTC and pruchased 1,000 shares of its stock, buying all 1000 shaces for $60,000, thns becoming the fonades and sole ounes of the company. 2. At the beginning of the year, Hopkins pchased, with $22,000 cash, gality cross-conatry sis, ropes snowshoes, and backpacks, all of which wonld be used on the vatious toues for at least a couple of years 3. On Jannacy 2, Hopkins paid $9,000 fos 18 months of business liability insueance 4. Hoplns paid $2,000 to a local fim foe setting p the compay 5. Hopkins acquiced eight used snowmobiles, paying $20,000 eash and signing a $30,000 note dated Febenacy that was payable to the High Mesa Epment Company. The note's peincipal was dne in full on its fos- year annme sary date. It caused an annnal ates est ate of 4%, and atesest mas omed at the end of each month High Mesa had insisted on a dicect ban: acconat withdcsal accangement with CUCTC. 6. Recng payments to subeontracted tone grides and helpers totaled $52,000 for the year 7 The check segister showed a total of $165,600 collected from enstomecs fog vanons tous. All tones wece pcepaid infl at the time of cesecration As of December 31, Nocis ascectained that $3,600 of the$165,600 . At the end of every month thee had been a $3,000 check disbnucsed to Hopkins with salary" as the 9. At the beginning of erecy month, there had been a $1,500 check issned for the tental of the ban from 10. These wece checks made ont to Ute Recceational Eqipment Inc. for ATV centals seveal times ding the was for trips schedrled eatly in the new year. notation which CUCTC operated year. For the year, those checks totaled $19,300. 11. Expendimees for fuel, food, and miscellaneons smpplies nsed on the tones totaled $$,000 fox the year. 12 Cash expendites fos cetaal pcovisions stocked in the bam's front shottcoom and available foe sale to tonme 13. Thece had been a $10,000 Apcil check made payable to Todd's Monatain Bikes. The cefecence line in the 14. Hoplans had paid $ 1,600 twice for an ad incegional quart ehr ontdoor adrentue magazine. The first customecs and others who wallked in totaled $14,700. registes noted, "one-qnarter partnership intesest check was dated June 1. The second check was dated December 1 and was for the magazines December 15. Retail mecchandise sales made and collected totaled $23,000. 16. In a December e-mail exchange with one of CUCTC's main snppliers of miscellaneous retail psovisions arailable for pruchase by tone enstomers (eg, watespcoof disposable camecas, T-shirts, canyon maps, and framed photos), Nocas noted that the smpplies had begua ganting 30-day ccedit teams to CUCTC. The e mail staing had confimed ceceipt of $1,200 worth of supplies by CUCTC on Decembes 20, and the check eegister had shown no related payment by year-end 17These was a tibboned certificate, dated November 30, declaring CUCTC as one of the egion s most promising ontdoor-based start-np companies of th a It as from the Westen Colorado Eaviconmental Alliance. In Hopkins's handwciting and nest to a saniley face, Noccis saw a note, Yeah, me. My stock jnst got moce aable 18. Norember mnst have been a slow month for CUCTC. Noens fonnd a handwuitten note that Hopkins had made: Took fie college buddies on a fone-day ton...no other business that week. we had a blast...no life-theeatening injes. They will pay $1,000 each in the aew yeas aftes they receit* their yeac-end boanses. 19. Thece was a letter fzoam a Missona law fem notifying Hopkins that a enstomer was sning CUCTC for medical bills and negligence celated to a biking accident on one of the sanmer tones. The sit was seeling $250,000. Nocas had asked Hopkins abont this Oh, that was a cany gu who gnoced ons instonctions and cantions when we had to natrigate throngh a bonlder Eeld in Diablo Canon. He took a spill and bolae his am He was a pain in the 20. There was one moxe letter in the box. This one was from Ute Recreational Egnipment Ine. infocming Hopkins that he co d prochase fr" of the ATVs he had fequently used fos $5,000 each. Hoplaas had noted in the margin nades a To Do" heades, "Sonds appealing, send letter of intent to accept the offec." No snch letter had been sent by the end of the yeat. 21. Nois had cequested that on December 31, Hopkins take a tally of the cetail merchandise on hand and available for sale to enstomess and the genecal pubic. Nouis xetcieved the e-mail Hopkins had sent him indicating that $900 of etail pcovisions wexe on hand on Decembes 3
