Question

er 1 Homework Problems 3 of 3 (3 complete) blenk (book/static) d company that rents canoes for use on local lakes and rivers. Amber and Zack W "Bio Four accounting firms and became CPAs. Because they both love the outda Requirements 1. Analyze the effects of Canyon Canoe Company's transactions on the accounting equation. 2. Prepare the income statement of Canyon Canoe Company for the month ended November 30, 2018. 3. Prepare the statement of retained earnings for the month ended November 30, 2018 4. Prepare the balance sheet as of November 30, 2018. 5. Calculate the return on assets for Canyon Canoe Company for November 2018. Print Done Clear All 1903. TOP 4 A

Answer 1

2)
Canyon Canoe Company
Income Statement
Month Ended Nov 30,2018
Revenue
Canoe Rental Revenue		$               4,400.00
Expenses
Rent Expense	$       1,200.00
Utilities Expense	$          150.00
Wages Expense	$       1,500.00
Telephone Expense	$          175.00
Total Expenses		$               3,025.00
Net Income		$               1,375.00
3)
Canyon Canoe Company
Statement of Retained Earnings
Month Ended Nov 30,2018
Beginning Retained Earnings	0
Add: Net Income	$       1,375.00
Less: Dividend	$        (150.00)
Ending Retained Earnings	$       1,225.00
4)
Canyon Canoe Company
Balance Sheet
Nov 30,2018
Assets		Liabilities
Cash	$     14,300.00	Accounts Payable	$   4,550.00
Accounts Recivables	$       2,250.00	Utilies Payable	$      150.00
Office Supplies	$          750.00	Telephone Payable	$      175.00
Canoes	$       4,800.00	Total Liabilities	$   4,875.00
		Shareholders' equity
		Common stock	$ 16,000.00
		Retained earnings	$   1,225.00
		Total shareholders' equity	$ 17,225.00
Total Assets	$     22,100.00	Total liabilities and shareholders' equity	$ 22,100.00
5)
Return on Assets = Net Income/ Average Assets
Return on Assets = 1375/ ((0+22100)/2)	12.44%