Reference no: EM132772369

William Charles achieved one of his life-long dreams by opening his own business, The Sunland Shack Driving Range, on May 1, 2020. He invested $19,350 of his own savings in the business. He paid $6,400 cash to have a small building constructed to house the operations and spent $735 on golf clubs, golf balls, and yardage signs. Charles leased 4 acres of land at a cost of $1,115 per month. (He paid the first month's rent in cash.) During the first month, advertising costs totaled $755, of which $165 was unpaid at the end of the month. Charles paid his three nephews $425 for retrieving golf balls. He deposited in the company's bank account all revenues from customers ($4,615). On May 15, Charles withdrew $735 in cash for personal use. On May 31, the company received a utility bill for $105 but did not immediately pay it. On May 31, the balance in the company bank account was $13,965.

Charles is feeling pretty good about results for the first month, but his estimate of profitability ranges from a loss of $5,385 to a profit of $1,480.

Problem 1: Prepare a balance sheet at May 31, 2020.