I need a full indepth explanation on how to plug in the accounting formula so i can pratice it! below is the questionSmokey Enterprises began operations by receiving $100,000 cash from its sole owner Jessica Jones. During its first year of operations, the business earned $20,000 in cash from operations and paid $15,000 in cash expenses. What is Smokey Enterprises’ net income for its first year of operations? Business Events for Year 1:1. Rustic Campsites (RCS) was formed at the beginning of Year 1 when it acquired$120,000 cash from issuing common stock to its owners.2. RCS borrowed $400,000 cash from a creditor.3. RCS paid $500,000 cash to purchase land.4. RCS obtained $85,000 cash from leasing camp sites to customers.5. RCS paid $50,000 cash for expenses.6.RCS paid dividends of $4,000 cash to its owners.7. The land that RCS paid $500,000 to purchase had an appraised market value of$525,000 at the end of Year 1.Beg. Bal.1.2.3.4.5.6.7.End Bal.CashAssetsLandAccounting EquationLiab.NotePayable+EquityCom. Stk.Ret. EarnOtherAccountTitles $5,000$15,000$105,000$20,000

The revenues and expenses are reported in the income statement of the company. The net income is…

Answered: Smokey Enterprises began operations by…

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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I need a full indepth explanation on how to plug in the accounting formula so i can pratice it! below is the question

Smokey Enterprises began operations by receiving $100,000 cash from its sole owner Jessica Jones. During its first year of operations, the business earned $20,000 in cash from operations and paid $15,000 in cash expenses. What is Smokey Enterprises’ net income for its first year of operations?

Business Events for Year 1:
1. Rustic Campsites (RCS) was formed at the beginning of Year 1 when it acquired
$120,000 cash from issuing common stock to its owners.
2. RCS borrowed $400,000 cash from a creditor.
3. RCS paid $500,000 cash to purchase land.
4. RCS obtained $85,000 cash from leasing camp sites to customers.
5. RCS paid $50,000 cash for expenses.
6.
RCS paid dividends of $4,000 cash to its owners.
7. The land that RCS paid $500,000 to purchase had an appraised market value of
$525,000 at the end of Year 1.
Beg. Bal.
1.
2.
3.
4.
5.
6.
7.
End Bal.
Cash
Assets
Land
Accounting Equation
Liab.
Note
Payable
+
Equity
Com. Stk.
Ret. Earn
Other
Account
Titles

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