O0 Preparing financial statements and evaluating business performance [20-30 min] Presented here are the accounts of Gate City Answering Service for the year ended December 31, 2012. P1-35A $ 8,000 Owner investment, 2012$ 28,000 32,000 Accounts payable Land Note payable Property tax expense Wayne, drawing Rent expense Salary expense Salary payable 11,000 2,600 Accounts receivable 1,000 30,000 Advertising expense 13,000 Building 65,000 Cash 15,000 145,200 3,000 1,300 Equipment 16,000 Service revenue 192,000 Insurance expense 10,000 Interest expense 2,500 7,000 Supplies Wayne, capital, 12/31/2011 54,000 4. Answer these questions about the company: a. Was the result of operations for the year a profit or a loss? How much? b. How much in total economic resources does the company have as it moves into the new year? c. How much does the company owe to creditors? d. What is the dollar amount of the owner's equity in the business at the end of the year?
O0 Preparing financial statements and evaluating business performance [20-30 min] Presented here are the accounts of Gate City Answering Service for the year ended December 31, 2012. P1-35A $ 8,000 Owner investment, 2012$ 28,000 32,000 Accounts payable Land Note payable Property tax expense Wayne, drawing Rent expense Salary expense Salary payable 11,000 2,600 Accounts receivable 1,000 30,000 Advertising expense 13,000 Building 65,000 Cash 15,000 145,200 3,000 1,300 Equipment 16,000 Service revenue 192,000 Insurance expense 10,000 Interest expense 2,500 7,000 Supplies Wayne, capital, 12/31/2011 54,000 4. Answer these questions about the company: a. Was the result of operations for the year a profit or a loss? How much? b. How much in total economic resources does the company have as it moves into the new year? c. How much does the company owe to creditors? d. What is the dollar amount of the owner's equity in the business at the end of the year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![O 0 Preparing financial statements and evaluating business performance
[20-30 min]
Presented here are the accounts of Gate City Answering Service for the year ended
December 31, 2012.
$ 8,000 Owner investment, 2012$ 28,000
32,000 Accounts payable
2,600 Accounts receivable
30,000 Advertising expense
13,000 Building
Land
Note payable
11,000
Property tax expense
Wayne, drawing
Rent expense
Salary expense
Salary payable
1,000
15,000
65,000 Cash
1,300 Equipment
192,000 Insurance expense
10,000 Interest expense
145,200
3,000
16,000
2,500
Service revenue
Supplies
Wayne, capital, 12/31/2011
7,000
54,000
4. Answer these questions about the company:
a. Was the result of operations for the year a profit or a loss? How much?
b. How much in total economic resources does the company have as it moves
into the new year?
c. How much does the company owe to creditors?
d. What is the dollar amount of the owner's equity in the business at the end of
the year?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6c26043e-09b5-4379-b9f8-ba0f4dabfd68%2Fd4616c3f-07ec-4443-b482-f3aab1309591%2Fg4s92ng_processed.jpeg&w=3840&q=75)
Transcribed Image Text:O 0 Preparing financial statements and evaluating business performance
[20-30 min]
Presented here are the accounts of Gate City Answering Service for the year ended
December 31, 2012.
$ 8,000 Owner investment, 2012$ 28,000
32,000 Accounts payable
2,600 Accounts receivable
30,000 Advertising expense
13,000 Building
Land
Note payable
11,000
Property tax expense
Wayne, drawing
Rent expense
Salary expense
Salary payable
1,000
15,000
65,000 Cash
1,300 Equipment
192,000 Insurance expense
10,000 Interest expense
145,200
3,000
16,000
2,500
Service revenue
Supplies
Wayne, capital, 12/31/2011
7,000
54,000
4. Answer these questions about the company:
a. Was the result of operations for the year a profit or a loss? How much?
b. How much in total economic resources does the company have as it moves
into the new year?
c. How much does the company owe to creditors?
d. What is the dollar amount of the owner's equity in the business at the end of
the year?
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