Accounting 101

ACCT201

Chapter 1

In-class exercises

On May 1, Nimbus Flying School, a company that provides flying lessons, was started with an investment of $45,000 cash in the business. Following are the assets and liabilities of the company on May 31, 2019, and the revenues and expenses for the month of May.

No additional investments were made in May, but the company paid dividends of $500 during the month.

Instructions

(a)  Prepare an income statement and a retained earnings statement for the month of May and a balance sheet at May 31.

Wyco Park, a public camping ground near the Four Corners National Recreation Area, has compiled the following financial information as of December 31, 2020.

a. Determine Wyco Park's net income for 2020.

b. Prepare a balance sheet for Wyco Park as of December 31, 2020.

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