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.   Prepare an accrual-basis income statement for the six months ended April 30.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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.

 

Prepare an accrual-basis income statement for the six months ended April 30.

 
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