The repair shop equipment was purchased on november 1 and

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Reference no: EM13586107

Kaffen Company, a ski tuning and repair shop, opened on November 1, 2013. 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, 2014.

	Cash Receipts	Cash Payments
Issuance of common shares	$22,000
Payment to purchase repair shop equipment		$ 9,100
Rent payments		1,260
Newspaper advertising payment		370
Utility bill payments		920
Part-time helper's wage payments		2,900
Income tax payment		10,200
Cash receipts from ski and snowboard repair services	31,830
Subtotals	53,830	24,750
Cash balance		29,080
Totals	$53,830	$53,830

The repair shop equipment was purchased on November 1 and has an estimated useful life of 5 years. The company rents space at a cost of $180 per month on a one-year lease. The lease contract requires payment of the first and last months' rent in advance, which was done. The part-time helper is owed $530 at April 30, 2014, for unpaid wages. At April 30, 2014, customers owe Kaffen Company $480 for services they have received but have not yet paid for

1. Prepare an accrual-basis income statement for the 6 months ended April 30, 2014.

2. Prepare the April 30, 2014, classified balance sheet

Reference no: EM13586107

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