Hermes Services was organized on August 1, 20Y2. A summary of the revenue and expense transactions for August follows: Fees earned $788,000 Wages expense 555,000 Rent expense 37,000 Supplies expense 7,900 Miscellaneous expense 11,300 Prepare an income statement for the month ended August 31. Be sure to complete the statement heading. Refer to the lists of Accounts in the information given, Labels, and Amount Descriptions for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is required. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive.
Hermes Services was organized on August 1, 20Y2. A summary of the revenue and expense transactions for August follows: Fees earned $788,000 Wages expense 555,000 Rent expense 37,000 Supplies expense 7,900 Miscellaneous expense 11,300 Prepare an income statement for the month ended August 31. Be sure to complete the statement heading. Refer to the lists of Accounts in the information given, Labels, and Amount Descriptions for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is required. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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Hermes Services was organized on August 1, 20Y2. A summary of the revenue and expense transactions for August follows:
| Fees earned | $788,000 |
| Wages expense | 555,000 |
| Rent expense | 37,000 |
| Supplies expense | 7,900 |
| Miscellaneous expense | 11,300 |
Prepare an income statement for the month ended August 31. Be sure to complete the statement heading. Refer to the lists of Accounts in the information given, Labels, and Amount Descriptions for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is required. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive.
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