At the end of the first month of operations for Juan's Service Company, the business had thefollowing accounts: Cash, Php19,000; Prepaid Rent, Php500; Equipment, Php5,000 andAccounts Payable Php2,000. By the end of the month, Jackson's had earned Php20,000 ofRevenues, Php1,000 of Utilities Expenses and Php1,500 of Salaries Expenses.Calculate the net income to be reported by the company for this first month. Prepare asingle-step income statement

A single-step income statement is the income statement that shows the sum of total revenue and total…

Answered: At the end of the first month of…

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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Pat's Custom Tuxedo Shop maintains its records on the cash basis. During this past year Pat's collected $42,900 in tailoring fees, and paid $12,100 in expenses. Depreciation expense totaled $1,500. Accounts receivable increased $1,050, supplies increased $3,700, and accrued liabilities increased $1,800. Pat's accrual-basis net income was: Multiple Choice $32,250. $26,350. $35,850. $22,750.
Krespy Corp. has a cash balance of $7,500 before the following transactions occur:- received customer payments of $965 supplies purchased on account $435 services worth $850 performed, 25% is paid in cash the rest will be billed corporation pays $275 for an ad in the newspaper bill is received for electricity used $235. dividends of $2,500 are distributed What is the balance in cash after these transactions are journalized and posted?
In its first year of operations, Maria Corp.earned 48,100 in service revenue.Of that amount, 8,200 was on account and the remainder, 39, 900, was collected in cash from customers. The company incurred various expenses totalling 32,300, of which 28,800 was paid in cash. At the year end, 3,500 was still owing on account. In addition, Maria prepaid 2,000 for insurance coverage that covered the last half of the first year and the first half of the second year. maria expects to owe 3000 of income tax when it files its corporate income tax return after year end.
Festivus Company has working capital of $140,680 on December 30. On December 31 it has the following transactions: An account payable for $10,000 is paid off An account receivable of $1,000 is written off (Festivus does not use the direct write-off method) $16,600 more inventory is purchased on account. If Account Payable balance on December 30th is $10,000 what is the Days Accounts Payable are outstanding? Use ending balance of AP instead of the average. Festivus' Gross profit percentage is
A company based in Montreal, Quebec has a cash balance of $15,000 as of June 1. During the month they paid $18,000 on account, $13,000 for wages, and $1,000 for other expense items. The company maintains a minimum cash balance of $10,000. Sales for the firm for April, May, and June are $15,000, $22,000, and $18,750, respectively. The company collects 40% of sales in the month of sale, 50% in the following month, and 10% in the second month following the month of sale. What is the cash surplus or deficit as of June 30, relative to the company's required minimum cash balance?

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