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Posted: July 16th, 2024

Beachway Enterprises was organized

Beachway Enterprises was organized on June 1, 2010, by two college students who recognized an opportunity to make money while spending their days at a beach in Florida. The two entrepreneurs plan to rent beach umbrellas. The following transactions occurred during the first month of operations:June 1: Received contributions of $2,000 from each of the two principal owners of the new business in exchange for shares of stock.June 1: Purchased 25 beach umbrellas for $250 each on account. The company has 30 days to pay for the beach umbrellas.June 5: Registered as a vendor with the city and paid the $35 monthly fee.June 10: Purchased $50 in miscellaneous supplies on an open account. The company has 30 days to pay for the supplies.June 15: Paid $70 bill from a local radio station for advertising for the last two weeks of June.June 17: Customers rented beach umbrellas for cash of $1,000.June 24: Billed a local hotel $2,000 for beach umbrellas provided for use during a convention being held at the hotel. The hotel is to pay one-half of the bill in five days and the rest within 30 daysRequired1. Prepare a table to summarize the preceding transactions as they affect the accounting equation. Use the format in Exhibit 3-1. Identify each transaction with a date.2. Prepare an income statement for the month ended June 30, 2010.3. Prepare a classified balance sheet at June 30, 2010.

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