Preparing a balance sheet

Price: $15 USD

Question description

William Murray achieved one of his life-long dreams by opening his own business, The Caddie Shack Driving Range, on May 1, 2014. He invested $19,200 of his own savings in the business. He paid $6,360 cash to have a small building constructed to house the operations and spent $820 on golf clubs, golf balls, and yardage signs. Murray leased 4 acres of land at a cost of $1,100 per month. (He paid the first month’s rent in cash.) During the first month, advertising costs totaled $770, of which $150 was unpaid at the end of the month. Murray paid his three nephews $400 for retrieving golf balls. He deposited in the company’s bank account all revenues from customers ($4,780). On May 15, Murray withdrew $820 in cash for personal use. On May 31, the company received a utility bill for $100 but did not immediately pay it. On May 31, the balance in the company bank account was $13,860.

Murray is feeling pretty good about results for the first month, but his estimate of profitability ranges from a loss of $5,340 to a profit of $1,590.

Tutor Answer

(Top Tutor) Daniel C.
School: Duke University
Studypool has helped 1,244,100 students
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1831 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors