CLA1 Accounting for the establishment of a business LU 2-1, LU 2-2, LU 2-3, LU 2-4, LU 2-5) The following information applies to the questions displayed below] Nicole has decided that she is going to start her business, Nicole's Getaway Spa (NGS). A lot has to be done when starting a new business. Here are some transactions that have occurred prior to April 30 a Received 585,000 cash when issuing 8,500 new common shares b. Purchased and by paying $4,500 cash and signing a note payable for $6,000 due in three years c. Hired a new aesthetician for a salary of $1.500 a month, starting next month. d. NGS purchased a company car for 523,000 cash list price of $26.000) to assist in running errands for the business e. Bought and received $1,000 in supplies for the spa on credit Paid $140 of the amount owed in (e) g. Nicole sold 100 of her own personal shares to Raea Gooding for $800. CC2-1 Part 2 2. Assuming that the beginning balances in each of the accounts are zero, complete T-accounts to summarize the transactions in a (9) Supplies Beg Bal Beg Bal 23000 1.000 8 [End Bal 61.000 Equipment Beg Ball 23.000 or - 10500 / / 23 000 - JOILLO Accounts Payable Beg B Nicole has decided that she is going to start her business, Nicole's Getaway Spa (NGS). A lot has to be done when starting a new business. Here are some transactions that have occurred prior to April 30, .. Received $85.000 cash when issuing 8.500 new common shares. b. Purchased land by paying $4,500 cash and signing a note payable for $6.000 due in three years c. Hired a new besthetician for a salary of $1,500 a month, starting next month d. NGS purchased a company car for $23.000 cash (list price of $26.000) to assist in running errands for the business e. Bought and received $1,000 in supplies for the spa on credit. Paid $140 of the amount owed in (e) 9. Nicole sold 100 of her own personal shares to Raea Gooding for $800, CC2-1 Part 3 3. Prepare a classified balance sheet at April 30 using the information given in the transactions. Include Retained Earnings with a zero balance NICOLE'S GETAWAY SPA Balance Sheet At April 30 Assets Current Assets Account Receivable Equipment abilities Cunos Stockholders' Equity [The following information applies to the questions displayed below) Nicole has decided that she is going to start her business, Nicole's Getaway Spa (NGS). A lot has to be done when starting a new business. Here are some transactions that have occurred prior to April 30. Received $85,000 cash when issuing 8,500 new common shares b. Purchased land by paying $4,500 cash and signing a note payable for $6,000 due in three years. c. Hired a new aesthetician for a salary of $1.500 a month, starting next month. d. NGS purchased a company car for $23,000 cash (list price of $26,000) to assist in running errands for the business. e. Bought and received $1,000 in supplies for the spa on credit. Paid $140 of the amount owed in (e) 9. Nicole sold 100 of her own personal shares to Raea Gooding for $800. CC2-1 Part 4 4. Calculate the current ratio at April 30. Numerator Current Ratio Current Assets Current Liabilities Denominator
