Question

Cullumber Company, a ski tuning and repair shop, opened on November 1, 2021. 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, 2022. Cash Receipts Cash Payments Issuance of common shares $21,200 Payment to purchase repair shop equipment $9,030 Rent payments to landlord 1,295 Newspaper advertising payment 325 Utility bill payments 800 Part-time helper's wage payments 2,000 Income tax payment 10,300 Cash receipts from ski and snowboard repair services 30,600 Subtotals 51,800 23,750 Cash balance 28,050 Totals $51,800 $51,800 Activate Windows The repair shop equipment was purchased on November 1 and has an estimated useful life of 5 years. Lease payments to the landlord are Settings to activate Windows made at the beginning of each month. The part-time helper is owed $545 at April 30, 2022, for unpaid wages. At April 30, 2022, customers owe Cullumber Company $430 for services they have received but have not yet paid for.

Answer 1

Income statement
Revenues
service revenue (30600+430)					31030
expenses:
Depreciation expenses (9030/5)*0.5				903
advertising expenses				325
utilities expenses				800
salaries & wages expenses(2000+545)				2545
Income tax expenses				10300
rent expenses				1295
Total expenses					16168
net income					14862
Balance sheet
Current assets
cash				28050
accounts receivable				430
Total current assets					28480
property, plant & equipments
equipment				9030
less: depreciation				903	8127
total assets					36607
liabilities & stockholder equity
current liabilities
salaries & wages payable					545
stockholder equity
common stock					21200
retained earning					14862
Total stockholder equity					36062
total liabilities & stockholder equity					36607