William Murray achieved one of his life-long dreams by opening his own business, The Blue Driving Range, on May 1, 2025. He invested $24,100 of his own savings in the business. He paid $6,850 cash to have a small building constructed to house the operations and spent $860 on golf clubs, golf balls, and yardage signs. Murray leased 4 acres of land at a cost of $1,320 per month. (He paid the first month's rent in cash.) During the first month, advertising costs totaled $760, of which $200 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 ($5,260). On May 15, Murray withdrew $810 in cash for personal use. On May 31, the company received a utility bill for $190 but did not immediately pay it. On May 31, the balance in the company bank account was $18,560. Murray is feeling pretty good about results for the first month, but his estimate of profitability ranges from a loss of $5,540 to a profit of $1,780.
William Murray achieved one of his life-long dreams by opening his own business, The Blue Driving Range, on May 1, 2025. He invested $24,100 of his own savings in the business. He paid $6,850 cash to have a small building constructed to house the operations and spent $860 on golf clubs, golf balls, and yardage signs. Murray leased 4 acres of land at a cost of $1,320 per month. (He paid the first month's rent in cash.) During the first month, advertising costs totaled $760, of which $200 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 ($5,260). On May 15, Murray withdrew $810 in cash for personal use. On May 31, the company received a utility bill for $190 but did not immediately pay it. On May 31, the balance in the company bank account was $18,560. Murray is feeling pretty good about results for the first month, but his estimate of profitability ranges from a loss of $5,540 to a profit of $1,780.
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 62P
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Q43.
What is income according to GAAP? The answer needs to be in dollar amount. I will leave a positive rating if answered corrected.
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William Murray achieved one of his life-long dreams by opening his own business, The Blue Driving
Range, on May 1, 2025. He invested $24,100 of his own savings in the business. He paid $6,850 cash
to have a small building constructed to house the operations and spent $860 on golf clubs, golf balls,
and yardage signs. Murray leased 4 acres of land at a cost of $1,320 per month. (He paid the first
month's rent in cash.) During the first month, advertising costs totaled $760, of which $200 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 ($5,260). On May 15, Murray
withdrew $810 in cash for personal use. On May 31, the company received a utility bill for $190 but
did not immediately pay it. On May 31, the balance in the company bank account was $18,560.
Murray is feeling pretty good about results for the first month, but his estimate of profitability ranges
from a loss of $5,540 to a profit of $1,780.
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