Jerry was working as a veternarian, and he earned an annual income of $135,000. He had savings of $86,000 in the bank, which was earning 3% interest per year. Then he decided to quit and start his own landscaping business. He used his $86,000 savings to purchase a truck and equipment. The values for his first year with his new business were: Revenue 265,000 Wages for employees 108,000 Insurance 2990 Depreciation 1920 Gasoline and vehicle 6125 maintenance Calculate Jerry's accounting profit for his first year. Answer:

Jerry was working as a veternarian, and he earned an annual income of $135,000. He had savings of $86,000 in the bank, which was earning 3% interest per year. Then he decided to quit and start his own landscaping business. He used his $86,000 savings to purchase a truck and equipment. The values for his first year with his new business were: Revenue 265,000 Wages for employees 108,000 Insurance 2990 Depreciation 1920 Gasoline and vehicle 6125 maintenance Calculate Jerry's accounting profit for his first year. Answer:

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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