LE2 - 5/24: Billed the local park district $1,200 for...

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Lab Experience #2 Just Humming Along Corporation was organized on May 1, 2004, by two college students who recognized an opportunity to make money while spending their days at a beach along Lake Michigan. The two entrepreneurs plan to rent bicycles and in-line skates to weekend visitors to the lakefront. The following transactions occurred during the first month of operations: 5/1: Received contribution of $9,000 from each of the two principal owners of the new business in exchange for shares of stock. 5/2: Purchased 10 bicycles for $300 each on an open account. The company has 30 days to pay for the bicycles. 5/9: Purchased 20 pairs of in-line skates at $125 per pair, 20 helmets at $50 each, and 20 sets of protective gear (knee and elbow pads and wrist guards) at $45 per set for cash. 5/15 Paid $125 bill from local radio station for advertising for the last two weeks of May. 5/17: Customers rented in-line skates and bicycles for cash of $1,800.
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Unformatted text preview: 5/24: Billed the local park district $1,200 for in-line skating lessons provided to neighborhood kids. The park district is to pay one-half of the bill within five working days and the rest within 30 days. 5/28: Received 50% of the amount billed to the park district. 5/29 Paid wages of $160 to employees. 5/30: Customers rented in-line skates and bicycles for cash of $3,000. 5/31 Paid the balance due from the bicycle purchase on 5/2. Required: Prepare a table to summarize the preceding transactions as they affect the accounting equation. Use the format on the back of this page. Just Humming Along Corporation Transactions for the Month of May 2004: Assets = Liabilities + Stockholders' Equity Accounts Accounts Capital Retained Date Cash Receivable Equipment Payable Stock Earnings 5/1 Balance 5/2 Balance 5/9 Balance 5/15 Balance 5/17 Balance 5/24 Balance 5/28 Balance 5/29 Balance 5/30 Balance 5/31 Balance...
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This note was uploaded on 06/15/2011 for the course ACCT 23020 taught by Professor Dorff,p during the Spring '08 term at Kent State.

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LE2 - 5/24: Billed the local park district $1,200 for...

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