Practice Problems

Complete these practice problems. Check your answers after you finish.

a.	GREEN HILLS RIDING STABLE, INCORPORATED Summary of Transactions Month of June 2010
		Assets		= Liabilities +			Stockholders Equity
Date	Explanation	Cash	Accounts Receivable	Land	Accounts Payable	Notes Payable	Capital + Stock	Retained Earnings
June 1	Capital stock issued	10,000		=			+$10,000
4	Rent expense	(1,200)						$(1,200)
		$8,800		=			+$10,000	$(1,200)
8	Feed expense				$800			(800)
		$8,800		=	$800		+$10,000	$(2000)
15	Boarding fees		$3,000					3,000
		$8,800	$3,000	=	$800		+$10,000	$1,000
20	Miscellaneous expenses	(600)						(600)
		$8,200	$3,000	=	800		+$10,000	$400
29	Purchased land by borrowing					$40,000
		$8,200	$3,000	=	$800	$40,000	+$10,000	$400
30	Salaries paid	(700)		$40,000				(700)
		$7,500	$3,000	$40,000=	$800	$40,000	+$10,000	$(300)
30	Riding and lesson fees billed		2,800					2,800
		$7,500	$5,800	$40,000	$800	$40,000	+$10,000	$2,500

GREEN HILLS RIDING STABLE, INCORPORATE Income Statement For the Month Ended 2010 June 30
Revenues:
Horse boarding fees revenue	$3,000
Riding and lesson fee revenue	2,800
Total revenues		$5,800
Expenses:
Rent expense	$1,200
Feed expense	800
Salaries expense	700
Miscellaneous expense	600
Total expenses		3,300
Net income		$2,500

GREEN HILLS RIDING STABLE, INCORPORATED Statement of Retained Earnings For the Month Ended 2010 June 30
Retained earnings, June 1	$-0-
Add: Net income for June	2,500
Total	$2,500
Less: Dividends	-0-
Retained earnings, June 30	$2,500

GREEN HILLS RIDING STABLE, INCORPORATE Balance Sheet 2010 June 30
Cash		$7,500
Accounts receivable		5,800
Land		40,000
Total assets		$53,300
Liabilities and Stockholders' Equity
Liabilities:
Accounts payable		$800
Noted payable		40,000
Total liabilities		$40,800
Stockholders' equity:
Capital stock	$10,000
Retained earnings	2,500
Total stockholders' equity		$12,500
Total liabilities and stockholders' equity		$53,300.00