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During 2018, Serenity Creek Spa reported revenue of $25,000. Total expenses for the year were $19,000. Serenity Creek Spa ended the year with total assets of $20,000, and it owed debts totaling $7000. At year-end 2017, the business reported total assets of $14,000 and total liabilities of $7000. A. Compute Serenity Creek Spa's net income for 2018. B. Did Serenity Creek Spa's stockholders' equity increase or decrease during 2018? By how much?

During 2018, Serenity Creek Spa reported revenue of $25,000. Total expenses for the year were $19,000. Serenity Creek Spa ended the year with total assets of $20,000, and it owed debts totaling $7000. At year-end 2017, the business reported total assets of $14,000 and total liabilities of $7000. A. Compute Serenity Creek Spa's net income for 2018. B. Did Serenity Creek Spa's stockholders' equity increase or decrease during 2018? By how much?

FINANCIAL ACCOUNTING
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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During 2018, Serenity Creek Spa reported revenue of $25,000. Total expenses for the year were $19,000. Serenity Creek Spa ended the year with total assets of $20,000, and it owed debts totaling $7000. At year-end 2017, the business reported total assets of $14,000 and total liabilities of $7000. A. Compute Serenity Creek Spa's net income for 2018. B. Did Serenity Creek Spa's stockholders' equity increase or decrease during 2018? By how much?
Transcribed Image Text:During 2018, Serenity Creek Spa reported revenue of $25,000. Total expenses for the year were $19,000. Serenity Creek Spa ended the year with total assets of $20,000, and it owed debts totaling $7000. At year-end 2017, the business reported total assets of $14,000 and total liabilities of $7000. A. Compute Serenity Creek Spa's net income for 2018. B. Did Serenity Creek Spa's stockholders' equity increase or decrease during 2018? By how much?
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