Ryan's day care business collected $35,000 in revenues. In addition, customers owed him $3,000 at year-end. During the year, Ryan spent $5,500 for supplies, $1,500 for utilities, $15,000 for rent, and $500 for miscellaneous expenses. One customer gave him use of their vacation home for a week (worth $2,500) in exchange for Ryan allowing their child to attend the day care center free of charge. Ryan accounts for his business activities using the cash method of accounting.
Ryan's day care business collected $35,000 in revenues. In addition, customers owed him $3,000 at year-end. During the year, Ryan spent $5,500 for supplies, $1,500 for utilities, $15,000 for rent, and $500 for miscellaneous expenses. One customer gave him use of their vacation home for a week (worth $2,500) in exchange for Ryan allowing their child to attend the day care center free of charge. Ryan accounts for his business activities using the cash method of accounting.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Ryan's day care business collected $35,000 in revenues. In addition, customers owed him $3,000 at year-end. During the year, Ryan spent $5,500 for supplies, $1,500 for utilities, $15,000 for rent, and $500 for miscellaneous expenses. One customer gave him use of their vacation home for a week (worth $2,500) in exchange for Ryan allowing their child to attend the day care center free of charge. Ryan accounts for his business activities using the cash method of accounting.
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