William James achieved one of his life-long dreams by opening his own business, The Blossom Shack Driving
Question:
William James achieved one of his life-long dreams by opening his own business, The Blossom Shack Driving Range, on May 1, 2020. He invested $19,000 of his own savings in the business. He paid $6,050cash to have a small building constructed to house the operations and spent $700 on golf clubs, golf balls, and yardage signs. James leased 4 acres of land at a cost of $1,000 per month. (He paid the first month’s rent in cash.) During the first month, advertising costs totaled $700, of which $140 was unpaid at the end of the month. James paid his three nephews $350 for retrieving golf balls. He deposited in the company’s bank account all revenues from customers ($4,500). On May 15, James withdrew $700 in cash for personal use. On May 31, the company received a utility bill for $100 but did not immediately pay it. On May 31, the balance in the company bank account was $14,140
How much are total assets on the May 31, 2020 Balance Sheet?
How much are total liabilities on the May 31, 2020 Balance Sheet?
How much was net income from the month of May?
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Expert Answer:
Every business entity shall have a practice of bookkeeping in order to know its asset and liability ... View the full answer
