AL MEJOR Custodian Commandos, Inc., provides janitorial services to public school systems. The business adjusts its accounts monthly, but closes them only at year-end. Its fiscal year ends on December 31. A summary of the company's total revenue and expenses at the end of five selected months is as follows. b. c. March 31 June 30 August 31 September 30 December 31 Total Revenue $ 69,000 129,000 134,000 159,000 249,000 Total Expenses $ 48,000 90,000 115,000 130,000 175,000 Rank the company's fiscal quarters from most profitable to least profitable. Compute the company's income for the month of September. Compute the company's net income (or loss) for the first two months of the third quarter. Provide a possible explanation why profitability for the first two months of the third quarter differs significantly from profitability achieved in the third month of the quarter (as computed in part b).

AL MEJOR Custodian Commandos, Inc., provides janitorial services to public school systems. The business adjusts its accounts monthly, but closes them only at year-end. Its fiscal year ends on December 31. A summary of the company's total revenue and expenses at the end of five selected months is as follows. b. c. March 31 June 30 August 31 September 30 December 31 Total Revenue $ 69,000 129,000 134,000 159,000 249,000 Total Expenses $ 48,000 90,000 115,000 130,000 175,000 Rank the company's fiscal quarters from most profitable to least profitable. Compute the company's income for the month of September. Compute the company's net income (or loss) for the first two months of the third quarter. Provide a possible explanation why profitability for the first two months of the third quarter differs significantly from profitability achieved in the third month of the quarter (as computed in part b).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Payroll Entries

Payroll is a comprehensive record of employees that are paid by the company. Payroll classifies employees into various categories according to their function and pays scale (basic wage, allowance, income tax, other taxes, employee loans, etc.). Payroll processes form the bedrock of every organization as it contains sensitive information on the ‘wage and paycheck’ portion of the company’s strength—its employees. The organization needs to keep a track of the employees currently on the payroll, the net payout for the company, the record of transactions related to the employees including deductions and payroll taxes to identify the liability and its effect on the balance sheet (and other financial statements). Payroll records also include qualitative factors such as the conduct of the employee.

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LO5-1, LO5-2, L05-7
EXERCISE 5.13
Interim Results
0812
008.01
AL. MAJBO99
Custodian Commandos, Inc., provides janitorial services to public school systems. The business
adjusts its accounts monthly, but closes them only at year-end. Its fiscal year ends on December 31.
leru
A summary of the company's total revenue and expenses at the end of five selected months is
as follows.
a.
b.
c.
March 31
June 30
August 31
September 30
December 31
Total
Revenue
$ 69,000
129,000
134,000
159,000
249,000
Total Expenses
$ 48,000
90,000
115,000
130,000
175,000
Rank the company's fiscal quarters from most profitable to least profitable.
Compute the company's income for the month of September.
Compute the company's net income (or loss) for the first two months of the third quarter.
Provide a possible explanation why profitability for the first two months of the third quarter
differs significantly from profitability achieved in the third month of the quarter (as computed
in part b).

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