William Murray achieved one of his life-long dreams by opening his own business, The Caddie Shack Driving Range, on May 1, 2017. He invested $19,600 of his own savings in the business. He paid $6,650 cash to have a small building constructed to house the operations and spent $760 on golf clubs, golf balls, and yardage signs. Murray leased 4 acres of land at a cost of $1,075 per month. (He paid the first month’s rent in cash.) During the first month, advertising costs totaled $740, of which $155 was unpaid at the end of the month. Murray paid his three nephews $410 for retrieving golf balls. He deposited in the company’s bank account all revenues from customers ($4,795). On May 15, Murray withdrew $760 in cash for personal use. On May 31, the company received a utility bill for $120 but did not immediately pay it. On May 31, the balance in the company bank account was $14,155.
Murray is feeling pretty good about results for the first month, but his estimate of profitability ranges from a loss of $5,445 to a profit of $1,690.
Prepare a balance sheet at May 31, 2017.