Boulder Corporation, a ski tuning and repair shop, opened November 1, 2017. The company carefully kept track of all its cash receipts and cash payments. The following information is available at the end of the ski season, April 30, 2018. Cash Receipts Cash Payments Issue of common shares $ 18,800 Payment for repair equipment $ 8,340 Rent payments 1,295 Newspaper advertising payment 390 Utility bills payments 1,030 Part-time helper’s salary payments 2,470 Income tax payment 9,700 Cash receipts from ski and snowboard repair services 34,240 Subtotals 53,040 23,225 Cash balance 29,815 Totals $ 53,040 $ 53,040 You learn that the repair equipment has an estimated useful life of 5 years. The company rents space at a cost of $ 185 per month on a one-year lease. The lease contract requires payment of the first and last months’ rent in advance, which was done. The part-time helper is owed $ 440 at April 30, 2018, for unpaid salaries. At April 30, 2018, customers owe Boulder Corporation $ 360 for services they have received but have not yet paid for. Using T-accounts, calculate the amounts that would be reported on an accrual basis for each of the following: Accounts Receivable, Accumulated Depreciation—Equipment, Advertising Expense, Cash, Common Shares, Depreciation Expense, Equipment, Income Tax Expense, Prepaid Rent, Rent Expense, Salaries Expense, Salaries Payable, Service Revenue, and Utilities Expense. Based on the balances determined for the above accounts, calculate the amount for Retained Earnings. Accounts Receivable $ Accumulated Depreciation-Equipment $ Advertising Expense $ Cash $ Common Shares $ Depreciation Expense $ Equipment $ Income Tax Expense $ Prepaid Rent $ Rent Expense $ Salaries Expense $ Salaries Payable $ Service Revenue $ Utilities Expense $ Retained earnings $

Boulder Corporation, a ski tuning and repair shop, opened November 1, 2017. The company carefully kept track of all its cash receipts and cash payments. The following information is available at the end of the ski season, April 30, 2018. Cash Receipts Cash Payments Issue of common shares $ 18,800 Payment for repair equipment $ 8,340 Rent payments 1,295 Newspaper advertising payment 390 Utility bills payments 1,030 Part-time helper’s salary payments 2,470 Income tax payment 9,700 Cash receipts from ski and snowboard repair services 34,240 Subtotals 53,040 23,225 Cash balance 29,815 Totals $ 53,040 $ 53,040 You learn that the repair equipment has an estimated useful life of 5 years. The company rents space at a cost of $ 185 per month on a one-year lease. The lease contract requires payment of the first and last months’ rent in advance, which was done. The part-time helper is owed $ 440 at April 30, 2018, for unpaid salaries. At April 30, 2018, customers owe Boulder Corporation $ 360 for services they have received but have not yet paid for. Using T-accounts, calculate the amounts that would be reported on an accrual basis for each of the following: Accounts Receivable, Accumulated Depreciation—Equipment, Advertising Expense, Cash, Common Shares, Depreciation Expense, Equipment, Income Tax Expense, Prepaid Rent, Rent Expense, Salaries Expense, Salaries Payable, Service Revenue, and Utilities Expense. Based on the balances determined for the above accounts, calculate the amount for Retained Earnings. Accounts Receivable $ Accumulated Depreciation-Equipment $ Advertising Expense $ Cash $ Common Shares $ Depreciation Expense $ Equipment $ Income Tax Expense $ Prepaid Rent $ Rent Expense $ Salaries Expense $ Salaries Payable $ Service Revenue $ Utilities Expense $ Retained earnings $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

	Cash Receipts	Cash Payments
Issue of common shares	$ 18,800
Payment for repair equipment		$ 8,340
Rent payments		1,295
Newspaper advertising payment		390
Utility bills payments		1,030
Part-time helper’s salary payments		2,470
Income tax payment		9,700
Cash receipts from ski and snowboard repair services	34,240
Subtotals	53,040	23,225
Cash balance		29,815
Totals	$ 53,040	$ 53,040

You learn that the repair equipment has an estimated useful life of 5 years. The company rents space at a cost of $ 185 per month on a one-year lease. The lease contract requires payment of the first and last months’ rent in advance, which was done. The part-time helper is owed $ 440 at April 30, 2018, for unpaid salaries. At April 30, 2018, customers owe Boulder Corporation $ 360 for services they have received but have not yet paid for.

Using T-accounts, calculate the amounts that would be reported on an accrual basis for each of the following: Accounts Receivable, Accumulated Depreciation—Equipment, Advertising Expense, Cash, Common Shares, Depreciation Expense, Equipment, Income Tax Expense, Prepaid Rent, Rent Expense, Salaries Expense, Salaries Payable, Service Revenue, and Utilities Expense. Based on the balances determined for the above accounts, calculate the amount for Retained Earnings.

Accounts Receivable		$
Accumulated Depreciation-Equipment		$
Advertising Expense		$
Cash		$
Common Shares		$
Depreciation Expense		$
Equipment		$
Income Tax Expense		$
Prepaid Rent		$
Rent Expense		$
Salaries Expense		$
Salaries Payable		$
Service Revenue		$
Utilities Expense		$
Retained earnings		$

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