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, 2021: Cash on hand and in the bank, $2,850; amounts due from customers from spa treatments, $1,850; building and equipment, $77,000; amounts owed to beauty supply outlets for spa equipment, $4,730; notes payable to a local bank for $39,570. Cash dividends of $2,000 will be paid to the stockholders during the year. Nicole also forecasts that first-year sales revenues will be $58,200; wages will be $27,500; the cost of supplies used up will be $10,500; office expenses will be $8,500; and income taxes will be $2,300. C1-1 (Algo) Part 1 equired: - Based on Nicole's estimates, prepare a (forecasted) income statement for Nicole's Getaway Spa for the year ended December 31, 2021. NICOLE'S GETAWAY SPA Income Statement (forecasted)

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, 2021: Cash on hand and in the bank, $2,850; amounts due from customers from spa treatments, $1,850; building and equipment, $77,000; amounts owed to beauty supply outlets for spa equipment, $4,730; notes payable to a local bank for $39,570. Cash dividends of $2,000 will be paid to the stockholders during the year. Nicole also forecasts that first-year sales revenues will be $58,200; wages will be $27,500; the cost of supplies used up will be $10,500; office expenses will be $8,500; and income taxes will be $2,300. C1-1 (Algo) Part 1 equired: - Based on Nicole's estimates, prepare a (forecasted) income statement for Nicole's Getaway Spa for the year ended December 31, 2021. NICOLE'S GETAWAY SPA Income Statement (forecasted)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Fraud

Fraud in accounting is the planned manipulation of financial documents to make a false appearance of corporate financial health. Moreover, it includes an employee, accountant, or the company itself misleading investors and shareholders.

Question

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, 2021: Cash on hand and in the bank, $2,850;
amounts due from customers from spa treatments, $1,850; building and equipment, $77,000; amounts owed to beauty
supply outlets for spa equipment, $4,730; notes payable to a local bank for $39,570. Cash dividends of $2,000 will be
paid to the stockholders during the year. Nicole also forecasts that first-year sales revenues will be $58,200; wages will be
$27,500; the cost of supplies used up will be $10,500; office expenses will be $8,500; and income taxes will be $2,300.
CC1-1 (Algo) Part 1
Required:
1. Based on Nicole's estimates, prepare a (forecasted) income statement for Nicole's Getaway Spa for the year ended December 31,
2021.
NICOLE'S GETAWAY SPA
Income Statement (forecasted)

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