Wildhorse Co., a ski tuning and repair shop, opened on November 1, 2016. The company...
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Accounting
Wildhorse Co., a ski tuning and repair shop, opened on November 1, 2016. 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, 2017.
Cash Receipts
Cash Payments
Issuance of common shares
$19,900
Payment to purchase repair shop equipment
$9,430
Payments to landlord
1,225
Newspaper advertising payment
365
Utility bill payments
885
Part-time helpers wage payments
2,950
Income tax payment
10,000
Cash receipts from ski and snowboard repair services
30,400
Subtotals
50,300
24,855
Cash balance
25,445
Totals
$50,300
$50,300
The repair shop equipment was purchased on November 1 and has an estimated useful life of 5 years. Lease payments to the landlord are made at the beginning of each month. The payments to the landlord included a security deposit of $175. The part-time helper is owed $495 at April 30, 2017, for unpaid wages. At April 30, 2017, customers owe Wildhorse Co. $455 for services they have received but have not yet paid for.
A.Prepare an accrual-basis income statement for the 6 months ended April 30, 2017.
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