The Radical Edge Ltd., a ski tuning and repair shop, opened in November 2011. The company did not record any transactions since its opening, but carefully kept track of all its cash receipts and cash payments. The following information is available at the end of the first ski season, April 30, 2012:
Additional Information:
1. At the end of April, customers owe The Radical Edge $1,440 for services they have received and not yet paid for.
2. The repair equipment was purchased at the beginning of November and has an estimated useful life of eight years.
3. On November 1, the company began renting space at a cost of $650 per month on a one-year lease. As required by the lease contract, the company paid the last month’s (October 2012) rent in advance.
4. The insurance policy was purchased November 1 and is effective for one year.
5. At April 30, $4,240 is owed for unpaid salaries.
6. At April 30, an additional $1,200 is owed for income tax.
Instructions
(a) Calculate the cash balance at April 30, 2012.
(b) Prepare an accrual basis income statement, statement of changes in equity, and statement of financial position for the six months ended April 30, 201
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