Net income ?P 122,500219,00060,000Accounts PayableAccounts ReceivableAccumulated Depreciation-BuildingAccumulated Depreciation-EquipmentAdvertising ExpenseArt Revenues60,000105,0001,437,500450,000BuildingCash36,20030,000Depreciation Expense-BuildingDepreciation Expense-EquipmentEquipmentInterest Expense30,000217,00037,000Land120,000Miscellaneous ExpenseMortgage PayableNotes PayableOffice SuppliesBlanche, Capital, 1/1/2017Blanche, WithdrawalsRepresentation ExpenseSalaries ExpenseSalaries PayableTravel Expense24,600395,000213,00017,20050,500148,600164,000673,20017,300159,000

Income statement: The income statement determines the net income of the business by subtracting the…

Net income ? P 122,500 219,000 60,000 60,000 Accounts Payable Accounts Receivable Accumulated Depreciation-Building Accumulated Depreciation-Equipment Advertising Expense Art Revenues Building Cash 105,000 1,437,500 450,000 36,200 Depreciation Expense-Building Depreciation Expense-Equipment Equipment Interest Expense Land Miscellaneous Expense Mortgage Payable 30,000 30,000 217,000 37,000 120,000 24,600 395,000

Net income ? P 122,500 219,000 60,000 60,000 Accounts Payable Accounts Receivable Accumulated Depreciation-Building Accumulated Depreciation-Equipment Advertising Expense Art Revenues Building Cash 105,000 1,437,500 450,000 36,200 Depreciation Expense-Building Depreciation Expense-Equipment Equipment Interest Expense Land Miscellaneous Expense Mortgage Payable 30,000 30,000 217,000 37,000 120,000 24,600 395,000

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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Accounts Payable Accumulated Depreciation - Buildings Accumulated Depreciation - Equipment Accumulated Depreciation - Leasehold Improvements Accumulated Depreciation - Machinery Accumulated Depreciation - Vehicle Overhaul Accumulated Depreciation - Vehicles Advertising Expense Asset Retirement Obligation Buildings Cash Common Shares Contributed Surplus - Donated Capital Cost of Goods Sold Deferred Revenue - Government Grants Depreciation Expense Donation Revenue Equipment Finance Expense Gain on Disposal of Buildings Gain on Disposal of Equipment Gain on Disposal of Machinery Gain on Disposal of Vehicles Gain on Vehicle Overhaul Gain or Loss in Value of Investment Property GST Receivable Interest Expense Interest Payable Inventory Investment Property Land Land Improvements Legal Expense Loss on Disposal of Buildings Loss on Disposal of Equipment Loss on Disposal of Machinery Loss on Disposal of Vehicles Loss on Vehicle Overhaul Machinery Mineral Resources Mortgage Payable No Entry…