Transaction Analysis and Financial Statements

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 bicydles 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 $9,500 from each of the two principal owners of the new business in exchange for shares of stock Purchased ten bicydes for $275 each on an open account. The company has 30 days to pay for the bicycles. May 1: Registered as a vendor with the city and paid the $20 monthly fee. May 5: Purchased 15 pairs of in-line skates at $140 per pair, 15 helmets at $35 each, and 15 sets of protective gear May 9: (knee and elbow pads and wrist guards) at $30 per set for cash. Purchased $105 in miscellaneous supplies on account. The company has 30 days to pay for the supplies. May 10: Paid $125 bill from local radio station for advertising for the last two weeks of May May 15: Customers rented in-line skates and bicycles for cash of $2,140. May 17: May 24: Billed the local park district $1,400 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. Received 50% of the amount billed to the park district. May 29: May 30: Customers rented in-line skates and bicycles for cash of $2,750. Paid wages of $150 to a friend who helped over the weekend. May 30: May 31: Paid the balance due on the bicycles Required: Caloulator RS A nt Income Statement For the Month of May Revenues: Rental fees Lessons Tolal Revenues Expenses Registration fee Advertising Salaries and wages expense Tolal Expenses Net income 3. Prepare a dassified balance sheet at May 31 Just Rolling Along Inc. Balance Sheet May 31 Assets Current assets: Cash Accounts receivable Supplies Totel current assets Property, plant, and equipiment Tutal assets Liabilties end Stockholders Equity Current liabilities Tutal stockholrs euty