Question: On June 1 you begin an ocean tour business for

On June 1 you begin an ocean tour business for the summer by contributing $600 of contributed capital and borrowing $600 from your parents. With your money, you pay $480 in June to rent a boat and supplies consisting of snorkels, fins, masks, and life jackets. You also purchase advertising in a local paper for $25 and gasoline for $135. You decide to charge $25 per passenger. At the end of the month of June, you have serviced 240 customers and purchased and used an additional $200 in gasoline. Included in those 240 customers were two neighbors who promised future payment which you have not received (totaling $225). You also pay your parents $5 for monthly interest.
Prepare an income statement and a statement of retained earnings for the month ending June 30 and a balance sheet at June 30.

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  • CreatedJuly 16, 2015
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