Question: Kaffen Company a ski tuning and repair shop opened on

Kaffen Company, a ski tuning and repair shop, opened on November 1, 2013. 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, 2014.

The repair shop equipment was purchased on November 1 and has an estimated useful life of 4 years. The company rents space at a cost of $175 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 $420 at April 30, 2014, for unpaid wages. At April 30, 2014, customers owe Kaffen Company $540 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, 2014.
(b) Prepare the April 30, 2014, classified balancesheet.

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  • CreatedApril 07, 2014
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