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Posted: July 16th, 2024
Beachway Enterprises was organized on June 1, 2010, by two college students who recognized an opportunity to make money while spending their days at a beach in Florida. The two entrepreneurs plan to rent beach umbrellas. The following transactions occurred during the first month of operations:June 1: Received contributions of $2,000 from each of the two principal owners of the new business in exchange for shares of stock.June 1: Purchased 25 beach umbrellas for $250 each on account. The company has 30 days to pay for the beach umbrellas.June 5: Registered as a vendor with the city and paid the $35 monthly fee.June 10: Purchased $50 in miscellaneous supplies on an open account. The company has 30 days to pay for the supplies.June 15: Paid $70 bill from a local radio station for advertising for the last two weeks of June.June 17: Customers rented beach umbrellas for cash of $1,000.June 24: Billed a local hotel $2,000 for beach umbrellas provided for use during a convention being held at the hotel. The hotel is to pay one-half of the bill in five days and the rest within 30 daysRequired1. Prepare a table to summarize the preceding transactions as they affect the accounting equation. Use the format in Exhibit 3-1. Identify each transaction with a date.2. Prepare an income statement for the month ended June 30, 2010.3. Prepare a classified balance sheet at June 30, 2010.
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