William Joseph achieved one of his life-long dreams by opening his own business, The Carla Vista Shack Driving Range, on May 1, 2020. He invested $19,400 of his own savings in the business. He paid $6,450 cash to have a small building constructed to house the operations and spent $740 on golf clubs, golf balls, and yardage signs. Joseph leased 4 acres of land at a cost of $1,090 per month. (He paid the first months rent in cash.) During the first month, advertising costs totaled $730, of which $195 was unpaid at the end of the month. Joseph paid his three nephews $350 for retrieving golf balls. He deposited in the companys bank account all revenues from customers ($4,570). On May 15, Joseph withdrew $740 in cash for personal use. On May 31, the company received a utility bill for $110 but did not immediately pay it. On May 31, the balance in the company bank account was $14,065. Joseph is feeling pretty good about results for the first month, but his estimate of profitability ranges from a loss of $5,335 to a profit of $1,550.

Prepare a balance sheet

Carla Vista Shack Driving Range Statement of Financial Position At May 31, 2020 Assets Buildings $ 6450 Equipment 740 Cash > $ Liabilities and Equity Liabilities