Question

Transaction Analysis and Financial Statements Beachway Enterprises was organized on June 1 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 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 hotel is to pay one-half of the bill in five days and the rest within 30 days. June 29: Received 50% of the amount billed to the hotel June 30: Customers rented beach umbrellas for cash of $1,500. June 30: Paid wages of $90 to a friend who helped over the weekend. June 30: Paid the balance due on the beach umbrellas. Required: 1. Complete the table below to summarize the preceding transactions as they affect the accounting equation. Identify cach transaction with a date Enter transactions in the same order as presented above. If an account is unaffected by a transaction, entero Use the minus sign to indicate decreases Beachway Enterprises < Previous Next

Answer 1

1.

	Cash	Accounts Receivable	Equipment	Supplies	Accounts Payable	Capital Stock	Retained Earnings
Jun-01	$                                                     4,000					$      4,000
Jun-01			$      6,250	$              -	$      6,250
Balance	$                                                     4,000	$              -	$      6,250	$              -	$      6,250	$      4,000	$             -
Jun-05	$                                                         -35						$          -35
Balance	$                                                     3,965	$              -	$      6,250	$              -	$      6,250	$      4,000	$          -35
Jun-10				$             50	$            50
Balance	$                                                     3,965	$              -	$      6,250	$             50	$      6,300	$      4,000	$          -35
Jun-15	$                                                         -70						$          -70
Balance	$                                                     3,895	$              -	$      6,250	$             50	$      6,300	$      4,000	$        -105
Jun-17	$                                                     1,000						$      1,000
Balance	$                                                     4,895	$              -	$      6,250	$             50	$      6,300	$      4,000	$          895
Jun-24		$       2,000					$      2,000
Balance	$                                                     4,895	$       2,000	$      6,250	$             50	$      6,300	$      4,000	$      2,895
Jun-29	$                                                     1,000	$      -1,000
Balance	$                                                     5,895	$       1,000	$      6,250	$             50	$      6,300	$      4,000	$      2,895
Jun-30	$                                                     1,500						$      1,500
Balance	$                                                     7,395	$       1,000	$      6,250	$             50	$      6,300	$      4,000	$      4,395
Jun-30	$                                                         -90						$          -90
Balance	$                                                     7,305	$       1,000	$      6,250	$             50	$      6,300	$      4,000	$      4,305
Jun-30	$                                                   -6,250				$     -6,250
Balance	$                                                     1,055	$       1,000	$      6,250	$             50	$            50	$      4,000	$      4,305
	Total Assets	$       8,355		Total Liabilities and Equity		$      8,355

2.

Income Statement
Revenue
Service Revenue	$       4,500
Total Revenues		$      4,500
Expenses
Registeration Fee	$             35
Advertisement Expense	$             70
Wages Expense	$             90
Total Expenses		$         195
Net Income		$      4,305

3.

Balance Sheet
Assets
Current Assets
Cash	$       1,055
Accounts Receivable	$       1,000
Supplies	$             50
Total Current Assets		$      2,105
Property, Plant & Equipment
Equipment		$      6,250
Total Assets		$      8,355
Liabilities & Stockholder's Equity
Current Liabilities
Accounts Payable	$             50
Total Current Liabilities		$            50
Stockholder's Equity
Capital Stock	$       4,000
Retained Earnings	$       4,305
Total Stockholder's Equity		$      8,305
Total Liabilities & Stockholder's Equity		$      8,355