Jeremy Jones has been an avid surfer for many years and is excited about the idea of opening his own Su
hopes that the surf shop will provide services by offering lessons and training and also be place he can s
other accessories. Throughout this semester we will be looking at the progress of Jeremy as he opens his
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 owners. The com
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
$10,000 $10,000
$25,000 $25,000
-$12,000 $12,000
Bal. $23,000 + $12,000 = $10,000 + $25,000
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 =
$10,000 $35,000
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 =
$25,000 $35,000
After the first month of operations Jones Surf Shop had the following revenues and expenses. Put the expenses and revenues in the corre
Revenue from Sales $2,500
Rent Expense $500
Marketing Expense $250
Utilities Expense $75
Jones Surf Shop
Income Statement
For Month Ended Month 1, Year 1
Revenue $2,500
Total Revenue $2,500
Expenses
, Rent Expense $550
Marketing Expense $250
Utilities Expense $75
Total Expenses $875
Net Income $1,625
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 $10,000
Land $12,000
Total Assets $22,000
Liabilities
Notes Payable $10,000
Total Liabilities $10,000
Owner's Equity
Owner's Equity $25,000
Total Owner's Equity $25,000
Total Liabilities & Owner's Equity $35,000
Define the term stakeholders. Identify two stakeholder groups for Jones Surf Shop and explain how each
Stakeholders: are people, organizations or entities who rely on the interest of a project and organizations
the financial orders. 1. Creditors: entities lend money to a organization, in this case a bank can help a bus
information for htem to purchase a product or service to an specific organization.
Identify the four financial statements that Jones Surf Shop will need to prepare and present each year an
The four financial statements Jones Surf Shop need to prepare and present are the following: 1. Income S
one is to have a specific control of the finance and performa the business is giving through a specific peri
during different times the business has the specific progress. 2. Statement of Owner's Equity: this one giv
assets and liabilities and the specific differences between both as a result of the owner's equity, in mean
hopes that the surf shop will provide services by offering lessons and training and also be place he can s
other accessories. Throughout this semester we will be looking at the progress of Jeremy as he opens his
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 owners. The com
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
$10,000 $10,000
$25,000 $25,000
-$12,000 $12,000
Bal. $23,000 + $12,000 = $10,000 + $25,000
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 =
$10,000 $35,000
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 =
$25,000 $35,000
After the first month of operations Jones Surf Shop had the following revenues and expenses. Put the expenses and revenues in the corre
Revenue from Sales $2,500
Rent Expense $500
Marketing Expense $250
Utilities Expense $75
Jones Surf Shop
Income Statement
For Month Ended Month 1, Year 1
Revenue $2,500
Total Revenue $2,500
Expenses
, Rent Expense $550
Marketing Expense $250
Utilities Expense $75
Total Expenses $875
Net Income $1,625
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 $10,000
Land $12,000
Total Assets $22,000
Liabilities
Notes Payable $10,000
Total Liabilities $10,000
Owner's Equity
Owner's Equity $25,000
Total Owner's Equity $25,000
Total Liabilities & Owner's Equity $35,000
Define the term stakeholders. Identify two stakeholder groups for Jones Surf Shop and explain how each
Stakeholders: are people, organizations or entities who rely on the interest of a project and organizations
the financial orders. 1. Creditors: entities lend money to a organization, in this case a bank can help a bus
information for htem to purchase a product or service to an specific organization.
Identify the four financial statements that Jones Surf Shop will need to prepare and present each year an
The four financial statements Jones Surf Shop need to prepare and present are the following: 1. Income S
one is to have a specific control of the finance and performa the business is giving through a specific peri
during different times the business has the specific progress. 2. Statement of Owner's Equity: this one giv
assets and liabilities and the specific differences between both as a result of the owner's equity, in mean
