Chapter 1, Problem P1.55CP

P1-55 is the first problem in a continuing problem that will be used throughout the chapters to reinforce the concepts learned
P1-55 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 Wilson graduated from college about 10 years ago She worked for one of the “Big Four" accounting firms and became a CPA. Because she loves the outdoors, she decided to begin a new business that will combine her love of outdoor activities with her business knowledge. Amber decides that she will create a new sole proprietorship. Canyon Canoe Company, or CCC for short The business began operations on November 1, 2018.

Nov. 1	Received $16,000 cash to begin the company and gave capital to Amber.
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 canoes.
13	Paid $1,500 cash for wages.
15	Wilson withdrew $50 cash from the business.
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 3,2016, purchase.
28	Received $750 from Early Start Daycare for canoe rental on November 22, 2018.
30	Wilson withdrew $100 cash from the business.

Requirements

1. Analyze the effects of Canyon Canoe Company's transactions on the accounting equation. Use the format of Exhibit 1-5, and include these headings: Cash; Accounts Receivable; Office Supplies; Canoes; Accounts Payable; Utilities Payable; Telephone Payable; Wilson, Capital; Wilson, Withdrawals; Canoe Rental Revenue; Rent Expense; Utilities Expense; Wages Expense; and Telephone Expense.
2. Prepare the income statement of Canyon Canoe Company for the month ended November 30, 2018.
3. Prepare the statement of owner s equity for the month ended November 30, 2018
4. Prepare the balance sheet as of November 30, 2018.
5. Calculate the return on assets for Canyon Canoe Company for November 2018.