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QUESTION 102 On March 1, 2017, Laredo Auto Rental, Inc. was organized The following transactions occurred during April 2017 April 1. The owner invested $200,000

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QUESTION 102 On March 1, 2017, Laredo Auto Rental, Inc. was organized The following transactions occurred during April 2017 April 1. The owner invested $200,000 in the company along with equipment that had a market value of $20,000 in exchange for common stock Apr 2. A company office and garage were located. The rent of $1600 was paid for the month April 3 - Sbx cars were taken on a monthly lease that totaled $1,200 and was paid for April 4. Fuel and other supplies for the month was purchased on credit. $3,200 April 6. Car rental fees of $18,200 were charged to customers and these were received April 8. Office stationery worth $1,200 was bought on credit. This should be treated as an expense. (This amount is due on May 6) April 9 - Miscellaneous expenses of $2.400 were paid April 12 - Land, near the airport for a future permanent site, to include an office and parking bays, was purchased from a savings and loan association by borrowing $150,000 on a note from that association. The loan is due to be repaid in three years. Interest payments are due at the end of each month beginning May 1 April 14 - Car rental fees of $12,500 were charged to customers. (This amount is due on May 10.) April 16. Salaries of $4.000 for the month were paid April 18 - Utility charges of $1,000 for the month were paid April 24 - Car repairs of $1,800 were undertaken and paid to a local mechanic April 28. A new computer system was leased for $600 (the bill will be paid on May 18) April 30 - A dividend payment of $1.200 was paid to the owner To answer the questions that follow you will need to (a) prepare a summary of the above and post the transactions using t-accounts, (b) prepare an income statement for the month of April 2017, and (c) prepare a balance sheet as of April 30, 2017 Based on the information above, what is the cash balance for Laredo Auto Rental on April 30, 2017? $200,000 $218.200 $205,000 5201,000 $220,000

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