nvested $24.100 of his own savings in the business. He paid $6,850 cash to have a small building constructed to house the operations and spent $860 on golf clubs, golf balls, and yardage signs. Murray leased 4 acres of land at a cost of $1.320 per month. (He paid the First month's rent in cash.) During the first month, advertising costs totaled $760, of which $200 was unpaid at the end of the month. Murray paid his three nephews $400 for retrieving golf balls. He deposited in the company's bank account all revenues from customers ($5,260). On May 15, Murray withdrew $810 in cash for personal use. On May 31, the company received a utility bill for $190 but did not immediately pay it. On May 31, the balance in the company bank account was $18.560. Murray is feeling pretty good about results for the first month, but his estimate of profitability ranges from a loss of $5,540 to a profit of $1.780. Prepare a balance sheet at May 31, 2025. Murray appropriately records any depreciation expense on a quarterly basis, (List
nvested $24.100 of his own savings in the business. He paid $6,850 cash to have a small building constructed to house the operations and spent $860 on golf clubs, golf balls, and yardage signs. Murray leased 4 acres of land at a cost of $1.320 per month. (He paid the First month's rent in cash.) During the first month, advertising costs totaled $760, of which $200 was unpaid at the end of the month. Murray paid his three nephews $400 for retrieving golf balls. He deposited in the company's bank account all revenues from customers ($5,260). On May 15, Murray withdrew $810 in cash for personal use. On May 31, the company received a utility bill for $190 but did not immediately pay it. On May 31, the balance in the company bank account was $18.560. Murray is feeling pretty good about results for the first month, but his estimate of profitability ranges from a loss of $5,540 to a profit of $1.780. Prepare a balance sheet at May 31, 2025. Murray appropriately records any depreciation expense on a quarterly basis, (List
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 62P
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Transcribed Image Text:William Murray achieved one of his life-long dreams by opening his own business. The Coronado Driving Range, on May 1, 2025. He
invested $24,100 of his own savings in the business. He paid $6,850 cash to have a small building constructed to house the operations
and spent $860 on golf clubs, golf balls, and yardage signs. Murray leased 4 acres of land at a cost of $1,320 per month. (He paid the
first month's rent in cash.) During the first month, advertising costs totaled $760, of which $200 was unpaid at the end of the month.
Murray paid his three nephews $400 for retrieving golf balls. He deposited in the company's bank account all revenues from
customers ($5,260). On May 15, Murray withdrew $810 in cash for personal use. On May 31, the company received a utility bill for
$190 but did not immediately pay it. On May 31, the balance in the company bank account was $18.560.
Murray is feeling pretty good about results for the first month, but his estimate of profitability ranges from a loss of $5.540 to a profit
of $1.780.
(a1)
Prepare a balance sheet at May 31, 2025. Murray appropriately records any depreciation expense on a quarterly basis. (List
Property, Plant, and Equipment in order of Buildings and Equipment.)
Owner's Equity
CORONADO DRIVING RANGE
Statement of Financial Position
May 31, 2025
Assets
Liabilities
Liabilities
$
$
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