Determine balances after each transaction to show

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Intermediate Algebra Within Reach
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Chapter 3 / Exercise 66
Intermediate Algebra Within Reach
Larson
Expert Verified
Determine balances after each transaction to show that the basic accounting equation balances.b. Prepare a balance sheet as of April 30.Problem C Analysis of the transactions of the Moonlight Drive-In Theater for June 2010disclosed the following:Ticket revenueUSD 180000Equipment rent expense50000Film rent expense53400Concession revenue29600Advertising expense18600Salaries expense60000Utilities expense14100Cash dividends declared and paid12000Balance sheet amounts at June 30 include the following:CashUSD 140,000Land148000Accounts payable87600Capital stock114000Retained earnings as of 2010 June 184900a. Prepare an income statement for June 2010.b. Prepare a statement of retained earnings for June 2010.c. Prepare a balance sheet as of 2010 June 30.d. How solvent does this company appear to be?Problem D Little Folks Baseball, Inc., was formed by a group of parents to meet a need for aplace for kids to play baseball. At the beginning of its second year of operations, its balance sheet appeared as follows:LITTLE FOLKS BASEBALLBalance Sheet 2010 April 30AssetsCash$ 56,000Accounts Receivable80,000Land600,000Total assets$ 736,000Liabilities and Stockholders' EquityLiabilities:Accounts payable$ 64,000Stockholders' Equity:Capital stock$ 400,000Retained earnings272,000672,000Total liabilities and stockholders' equity$ 736,000The summarized transactions for May 2010 are as follows:
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Intermediate Algebra Within Reach
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Chapter 3 / Exercise 66
Intermediate Algebra Within Reach
Larson
Expert Verified
account, USD 120,000.a. Prepare a summary of transactions (see Part A of Exhibit 4) using column headings as given inthe balance sheet. Determine balances after each transaction.b. Prepare an income statement for May 2010.c. Prepare a statement of retained earnings for May 2010.d. Prepare a balance sheet as of 2010 May 31.The balance sheets for 2010 May 31, and 2010 April 30, and the income statement for May of theTarget-Line Golf Driving Range follow. (Common practice is to show the most recent period first.)TARGET-LINE GOLF DRIVING RANGEComparative Balance SheetMay 31,April 30,20102010AssetsCash$56,400$46,800Land163,200144,000Total assets$219,600$190,800Liabilities and Stockholders' EquityAccounts payable$18,000$27,600Capital stock144,000144,000Retained earnings57,60019,200Total liabilities and stockholders' equity$219,600$190,800TARGET-LINE GOLF DRIVING RANGEIncome StatementFor the Month Ended 2010 May 31Revenues:Service revenue$64,000Expenses:Salaries expense $16,000Equipment rental expense9,60025,600Net income$38,400All revenues earned are on account.State the probable cause(s) of the change in each of the balance sheet accounts from April 30 to2010 May 31.

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