Using the accounting equation for transaction analysis, preparing financial statements, and calculating return on assets (ROA)Canyon Canoe Company is a service-based company that rents canoes for use on local lakes and rivers. Amber and Zack Wilson graduated from college about 10 years ago. They both worked for one of the “Big Four” accounting firms and became CPAs. Because they both love the outdoors, they decided to begin a new business that will combine their love of outdoor activities with their business knowledge. Amber and Zack decide that they will create a new corporation, Canyon Canoe Company, or CCC for short. The business began operations on November 1, 2018.RequirementsAnalyze the effects of Canyon Canoe Company’s transactions on the accounting equation. Use the format of Exhibit 1-6, and include these headings: Cash; Accounts Receivable; Office Supplies; Canoes; Accounts Payable; Utilities Payable; Telephone Payable; Common Stock; Dividends; Canoe Rental Revenue; Rent Expense; Utilities Expense; Wages Expense; and Telephone Expense.Prepare the income statement of Canyon Canoe Company for the month ended November 30, 2018.Prepare the statement of retained earnings for the month ended November 30, 2018.Prepare the balance sheet as of November 30, 2018.Calculate the return on assets for Canyon Canoe Company for November 2018. Nov. 1 Received $16,000 cash to begin the company and issued common stock toAmber and Zack.2 Signed a lease for a building and paid $1,200 for the first month's rent.3 Purchased canoes for $4,800 on account.4 Purchased office supplies on account, $750.7 Earned $1,400 cash for rental of canocs.13 Paid $1,500 cash for wages.15 Paid $50 dividends to stockholders.16 Received a bill for $150 for utilities. (Use separate payable account.) 20 Received a bill for $175 for cell phone expenses. (Use separate payable account.)22 Rented canoes to Early Start Daycare on account, $3,000.26 Paid $1,000 on account related to the November 3, 2018, purchase.28 Received $750 from Early Start Daycare for canoe rental on November 22, 2018.30 Paid $100 dividends to stockholders.

Answered: Image /qna-images/answer/b3d7112a-c65c-40a3-bd11-38f5e213b664.jpg

Answered: Nov. 1 Received $16,000 cash to begin…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Using the accounting equation for transaction analysis, preparing financial statements, and calculating return on assets (ROA)

Canyon Canoe Company is a service-based company that rents canoes for use on local lakes and rivers. Amber and Zack Wilson graduated from college about 10 years ago. They both worked for one of the “Big Four” accounting firms and became CPAs. Because they both love the outdoors, they decided to begin a new business that will combine their love of outdoor activities with their business knowledge. Amber and Zack decide that they will create a new corporation, Canyon Canoe Company, or CCC for short. The business began operations on November 1, 2018.

Requirements

Analyze the effects of Canyon Canoe Company’s transactions on the accounting equation. Use the format of Exhibit 1-6, and include these headings: Cash; Accounts Receivable; Office Supplies; Canoes; Accounts Payable; Utilities Payable; Telephone Payable; Common Stock; Dividends; Canoe Rental Revenue; Rent Expense; Utilities Expense; Wages Expense; and Telephone Expense.
Prepare the income statement of Canyon Canoe Company for the month ended November 30, 2018.
Prepare the statement of retained earnings for the month ended November 30, 2018.
Prepare the balance sheet as of November 30, 2018.
Calculate the return on assets for Canyon Canoe Company for November 2018.

Nov. 1 Received $16,000 cash to begin the company and issued common stock to
Amber and Zack.
2 Signed a lease for a building and paid $1,200 for the first month's rent.
3 Purchased canoes for $4,800 on account.
4 Purchased office supplies on account, $750.
7 Earned $1,400 cash for rental of canocs.
13 Paid $1,500 cash for wages.
15 Paid $50 dividends to stockholders.
16 Received a bill for $150 for utilities. (Use separate payable account.)

20 Received a bill for $175 for cell phone expenses. (Use separate payable account.)
22 Rented canoes to Early Start Daycare on account, $3,000.
26 Paid $1,000 on account related to the November 3, 2018, purchase.
28 Received $750 from Early Start Daycare for canoe rental on November 22, 2018.
30 Paid $100 dividends to stockholders.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 5 steps with 5 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG