Kimberly and Matthew Young, local golf stars, opened the Crane Driving Range Company on March 1, 2027. They invested $24,000 cash and received common stock in exchange for their investment. A caddy shack was constructed for cash at a cost of $7,800, and $780 was spent on golf balls and golf clubs. The Youngs leased five acres of land at a cost of $1.200 per month and paid the first month's rent. During the first month, advertising costs totaled $700, of which $150 was unpaid at March 31, and $400 was paid to members of the high-school golf team for retrieving golf balls. All revenues from customers were deposited in the company's bank account. On March 15, Kimberly and Matthew received a dividend of $850. A $100 utility bill was received on March 31 but was not paid. On March 31, the balance in the company's bank account was $18,300. Kimberly and Matthew thought they had a pretty good first month of operations. But, their estimates of profitability ranged from a loss of $5,700 to net income of $2,630. Answer the following. (b1) Prepare a balance sheet at March 31. (List property, plant, and equipment in order of buildings, then equipment.)
Kimberly and Matthew Young, local golf stars, opened the Crane Driving Range Company on March 1, 2027. They invested $24,000 cash and received common stock in exchange for their investment. A caddy shack was constructed for cash at a cost of $7,800, and $780 was spent on golf balls and golf clubs. The Youngs leased five acres of land at a cost of $1.200 per month and paid the first month's rent. During the first month, advertising costs totaled $700, of which $150 was unpaid at March 31, and $400 was paid to members of the high-school golf team for retrieving golf balls. All revenues from customers were deposited in the company's bank account. On March 15, Kimberly and Matthew received a dividend of $850. A $100 utility bill was received on March 31 but was not paid. On March 31, the balance in the company's bank account was $18,300. Kimberly and Matthew thought they had a pretty good first month of operations. But, their estimates of profitability ranged from a loss of $5,700 to net income of $2,630. Answer the following. (b1) Prepare a balance sheet at March 31. (List property, plant, and equipment in order of buildings, then equipment.)
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter12: Corporations: Organization, Capital Structure, And Operating Rules
Section: Chapter Questions
Problem 27P
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Transcribed Image Text:Kimberly and Matthew Young, local golf stars, opened the Crane Driving Range Company on March 1, 2027. They invested $24,000
cash and received common stock in exchange for their investment. A caddy shack was constructed for cash at a cost of $7,800, and
$780 was spent on golf balls and golf clubs. The Youngs leased five acres of land at a cost of $1,200 per month and paid the first
month's rent.
During the first month, advertising costs totaled $700, of which $150 was unpaid at March 31, and $400 was paid to members of the
high-school golf team for retrieving golf balls. All revenues from customers were deposited in the company's bank account. On March
15, Kimberly and Matthew received a dividend of $850. A $100 utility bill was received on March 31 but was not paid. On March 31,
the balance in the company's bank account was $18,300.
Kimberly and Matthew thought they had a pretty good first month of operations. But, their estimates of profitability ranged from a
loss of $5,700 to net income of $2,630.
Answer the following.
(b1)
Prepare a balance sheet at March 31. (List property, plant, and equipment in order of buildings, then equipment.)
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