Complete Question Text:
PROBLEM 2 CLEARLY SHOW YOUR WORK 10 PTS.
TRANSACTION ANALYSIS AND STATEMENT RELATIONSHIP
DATA: YOU ARE ONLY DOING THE MONTH OF MARCH
The Golden Petting Zoo Inc. started operating on March 1, 2011 a drive-through tourist attraction in Colorado. The company adjusts its accounts at the end of each month. Below are the transactions that the Zoo had for the month of March 2011. The firm’s year end is December 31.
DATA:
1. Three months’ rent was prepaid on March 1 (totaled $4500 and rent is $1500 per month)
2.The fencing and other equipment was bought and installed on March 1 and cash of $10,000 was paid. These are being depreciated at $200 per month.
3. During the month of March ticket revenues for March visits (which were earned) amounted to $5,000 and this was received in cash.
3.Unearned ticket revenue represents tickets sold for future zoo visits. This amounted to $800 (cash received) during the month of March and these tickets will be used for visits to the zoo in April.
4. On March 1 the firm received $20,000 from the stockholders and common stock was issued in return.
5. During March, food for the zoo animals was $1,500 and employee salaries were $500 and all of this was paid in cash.
6. Zoo animals had to be purchased for $14,000 and on March 1 $4,000 was paid in cash for the zoo animals and at March 31 $10,000 is still owed on the animals and is due within 6 months. (thisis a non-interest bearing debt.) The zoo animals will not be depreciated on a monthly basis, so no depreciation for the month of March.
7. For the month of March the utility bills were $550 and all of this is still owed as of March 31.
8. Dividends of $300 were paid to the investors on March 31.
Find: total assets, total liabilities, total stockholders’ equity
