Question

Oriole 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 $20,000 Payment to purchase repair shop equipment $9,220 Rent payments to landlord 1,295 Newspaper advertising payment 340 Utility bill payments 815 Part-time helper’s wage payments 2,150 Income tax payment 10,500 Cash receipts from ski and snowboard repair services 30,100 Subtotals 50,100 24,320 Cash balance 25,780 Totals $50,100 $50,100 The repair shop equipment was purchased on November 1 and has an estimated useful life of 5 years. Lease payments to the landlord are made at the beginning of each month. The part-time helper is owed $490 at April 30, 2022, for unpaid wages. At April 30, 2022, customers owe Oriole Company $475 for services they have received but have not yet paid for. Prepare an accrual-basis income statement for the 6 months ended April 30, 2022. ORIOLE COMPANY Income Statement

Answer 1

Answer is given below

Income Statement $30,575 ($30,100+$475) Oriole Company Income Statement For the year ended April 30,2022 Revenue Less: Expense Rent expense Newspaper advertising Utilities expense Wages expense Depreciation expense Income tax Total expenses Net Income $1,295 $340 $815 $2,640 $922 $10,500 ($2,150+ $490) ($9,220/5*6/12) $16,512 $14,063 Oriole Company Balance Sheet As on April 30,2022 Assets Current Assets Cash Accounts Receivable Total Current Assets $25,780 $475 $26,255 $9,220 -$922 Equipment: Cost Less: Depreciation Equipment (Net) Total Assets Liabilities and Stockholders' equity Current Liabilities: Outstanding wages $8,298 $34,553 $490 Stockholders' Equity: Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' equity $20,000 $14,063 $34,063 $34,553