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Nicole Mackisey is thinking of forming her own spa business, Nicole's Getaway Spa (NGS). Nicole expects that she and two family members will each contribute $10,000 to the business and receive 1,000 shares each. Nicole forecasts the following amounts for the first year of operations, ending December 31, 2018: Cash on hand and in the bank, $2,150; amounts due from customers from spa treatments, $1,780; building and equipment, $70,000; amounts owed to beauty supply outlets for spa equipment, $4,660; notes payable to a local bank for $38,870. Cash dividends of $2,000 will be paid to the stockholders during the year. Nicole also forecasts that first-year sales revenues will be $40,000; wages will be $24,000; the cost of supplies used up will be $7,000; office expenses will be $5,000; and income taxes will be $1,600. 3. Prepare a (forecasted) balance sheet for Nicole's Getaway Spa at December 31, 2018. Help

Nicole Mackisey is thinking of forming her own spa business, Nicole's Getaway Spa (NGS). Nicole expects that she and two family members will each contribute $10,000 to the business and receive 1,000 shares each. Nicole forecasts the following amounts for the first year of operations, ending December 31, 2018: Cash on hand and in the bank, $2,150; amounts due from customers from spa treatments, $1,780; building and equipment, $70,000; amounts owed to beauty supply outlets for spa equipment, $4,660; notes payable to a local bank for $38,870. Cash dividends of $2,000 will be paid to the stockholders during the year. Nicole also forecasts that first-year sales revenues will be $40,000; wages will be $24,000; the cost of supplies used up will be $7,000; office expenses will be $5,000; and income taxes will be $1,600. 3. Prepare a (forecasted) balance sheet for Nicole's Getaway Spa at December 31, 2018. Help

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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-ded homework Nicole Mackisey is thinking of forming her own spa business, Nicole's Getaway Spa (NGS). Nicole expects that she and two family members will each contribute $10,000 to the business and receive 1,000 shares each. Nicole forecasts the following amounts for the first year of operations, ending December 31, 2018: Cash on hand and in the bank, $2,150; amounts due from customers from spa treatments, $1,780; building and equipment, $70,000; amounts owed to beauty supply outlets for spa equipment, $4,660; notes payable to a local bank for $38,870. Cash dividends of $2,000 will be paid to the stockholders during the year. Nicole also forecasts that first-year sales revenues will be $40,000; wages will be $24,000; the cost of supplies used up will be $7,000; office expenses will be $5,000; and income taxes will be $1,600. 3. Prepare a (forecasted) balance sheet for Nicole's Getaway Spa at December 31, 2018. NICOLE'S GETAWAY SPA Balance Sheet (forecasted) At December 31, 2018 Assets Accounts Payable Accounts Receivable Building and Equipment Building and Equipment Total Assets Cash Income Tax Expense Common Stock Total Current Liabilities Current Assets Stockholders' Equity Income Tax Expense Notes Payable Office Expenses Total Liabilities and Stockholders' Equity $ $ $ 10,000 1,780 2,000 2,000 15,780 2,150 4,332 5,000 11,482 Seved 7,000 38,870 45,870 Help Save & Exit Check
Transcribed Image Text:-ded homework Nicole Mackisey is thinking of forming her own spa business, Nicole's Getaway Spa (NGS). Nicole expects that she and two family members will each contribute $10,000 to the business and receive 1,000 shares each. Nicole forecasts the following amounts for the first year of operations, ending December 31, 2018: Cash on hand and in the bank, $2,150; amounts due from customers from spa treatments, $1,780; building and equipment, $70,000; amounts owed to beauty supply outlets for spa equipment, $4,660; notes payable to a local bank for $38,870. Cash dividends of $2,000 will be paid to the stockholders during the year. Nicole also forecasts that first-year sales revenues will be $40,000; wages will be $24,000; the cost of supplies used up will be $7,000; office expenses will be $5,000; and income taxes will be $1,600. 3. Prepare a (forecasted) balance sheet for Nicole's Getaway Spa at December 31, 2018. NICOLE'S GETAWAY SPA Balance Sheet (forecasted) At December 31, 2018 Assets Accounts Payable Accounts Receivable Building and Equipment Building and Equipment Total Assets Cash Income Tax Expense Common Stock Total Current Liabilities Current Assets Stockholders' Equity Income Tax Expense Notes Payable Office Expenses Total Liabilities and Stockholders' Equity $ $ $ 10,000 1,780 2,000 2,000 15,780 2,150 4,332 5,000 11,482 Seved 7,000 38,870 45,870 Help Save & Exit Check
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