Jeremy Jones has been an avid surfer for many years and is excited about the idea of opening
hometown. He hopes that the surf shop will provide services by offering lessons and training
top quality surfboards and other accessories. Throughout this semester we will be looking at t
opens his Surf Shop and juggles the accounting decisions that have to be made along the way
Jones Surf Shop was started when it acquired $10,000 from creditors and $25,000 from owne
Record the events under an accounting equation (Enter values in the yellow highlighted cells)
Jones Surf Shop
Accounting Equation
ASSETS = LIABILITIES + STOCKHOLDERS' EQUITY
Cash + Land = Creditors + Stockholders' Equity
Bal. $0 + $0 = $0 + $0
After the events have been recorded, Jones's obligation to creditors represents what percent of total assets?
Percentage of total assets Creditors Claim / Total Assets =
After the events have been recorded, Jones's stockholders' equity represents what percentage of total assets?
Percentage of total assets Investor's Claim/ Total Assets =
After the first month of operations Jones Surf Shop had the following revenues and expenses. Put the expenses and
Revenue from Sale $2,500
Rent Expense $500
Marketing Expense $250
Utilities Expense $75
Jones Surf Shop
Income Statement
For Month Ended Month 1, Year 1
Revenue
Total Revenue $0
Expenses
Rent Expense
Marketing Expense
Utilities Expense
Total Expenses $0
Net Income $0
Please complete the balance sheet for Jones Surf Shop as of the end of Month 1
Jones Surf Shop
Balance Sheet
As of End of Month 1, Year 1
Assets
Cash
Land
Total Assets $0
Liabilities
Notes Payable
Total Liabilities $0
Owner's Equity
Owner's Equity
Total Owner's Equity $0
Total Liabilities & Owner's Equity $0
Define the term stakeholders. Identify two stakeholder groups for Jones Surf Shop and explain
Identify the four financial statements that Jones Surf Shop will need to prepare and present ea
ed about the idea of opening his own Surf Shop in his
ffering lessons and training and also be place he can sell
mester we will be looking at the progress of Jeremy as he
ve to be made along the way.
ors and $25,000 from owners. The company immediately purchased land that cost $12,000.
the yellow highlighted cells)
hat percent of total assets?
Percent of Total
at percentage of total assets?
Percent of Total
nd expenses. Put the expenses and revenues in the correct Income Statement form below and calculate the Net Income
Jones Surf Shop and explain how each group might use the information contained in the financial stat
ed to prepare and present each year and describe the purpose of each.
at cost $12,000.
calculate the Net Income
ained in the financial statements.
