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.
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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?
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- Brian Sipe began operations of his business, Sipe Sons Incorporated, on January 1, Year One. During the year, the company performed services on credit of $192,000. Of that amount, $115,750 was collected in cash during the year. Brian estimates, of the remaining amount due, $5,100 may not be collected. Prepare the entries for the events during Year One. What is the balance in the accounts receivable account? What is the amount of receivables reported on the balance sheet? Why would Brian have a separate allowance account and not reduce the receivable balance for the amount estimated to be uncollectible? What type of account is Allowance for Doubtful Accounts? Continuing problem 2, Sipe Sons Incorporated continued to have successful operations in Year Two. Sales on credit amounted to $205,000 and cash collections were $183,250. At the end of Year Two, he estimates of the remaining amount due, $8,600 may not be collected. What is the balance in the accounts…A company maintains its records using cash-basis accounting. During the year, the company received cash from customers, $36,000, and paid cash for salaries, $26,000. At the beginning of the year, customers owe the company $3,600. By the end of the year, customers owe $5,600. At the beginning of the year, the company owes salaries of $3,000. At the end of the year, the company owes salaries of $5,900.Determine cash-basis net income and accrual-basis net income for the year.Life, Inc., experienced the following events in 2018, its first year of operation:Performed counseling services for $23,600 cash.On February 1, 2018, paid $16,200 cash to rent office space for the coming year.Adjusted the accounts to reflect the amount of rent used during the year.RequiredBased on this information alone:1)Record the events under an accounting equation.2)Prepare an income statement, balance sheet, and statement of cash flows for the 2018 accounting period.3)Ignoring all other future events, what is the amount of rent expense that would be recognized in 2019?Under required please if you could show me how to do 1,2, &3.
- During the first year of operation, Year 1, McGinnis Appliance recognized $292,000 of service revenue on account. At the end of Year 1, the accounts receivable balance was $57,400. Even though this is his first year in business, the owner believes he will collect all but about 4 percent of the ending balance. Required a. What amount of cash was collected by McGinnis during Year 1? b. Assuming the use of an allowance system to account for uncollectible accounts, what amount should McGinnis record as uncollectible accounts expense in Year 1? c. What is the net realizable value of receivables at the end of Year 1? d. Show the effect of these transactions on the financial statements by recording the appropriate amounts in a horizontal statements model like the one shown here. When you record amounts in the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). If element is not affected by the event, leave the cell…(Appendix 3.1) Vickelly Company uses cash-basis accounting. At the end of the current year, Vickelly's checkbook shows cash receipts from customers of $112,000 and cash payments for operating expenses of $48,000 for the year. At the end of the year, Vickelly determined that customers owed it $12,000, and it owed creditors $10,00o. Compute Vickelly's sales revenue, operating expenses, and net income on an accrual basis.Expert Computers was started in Year 1. The company experienced the following accounting events during its first year of operation: 1. Started business when it acquired $83,000 cash from the issue of common stock. 2. Purchased merchandise with a list price of $67,000 on account, terms 3/10, n/30. 3. Paid off one-half of the accounts payable balance within the discount period. 4. Sold merchandise on account for $54,400. Credit terms were 2/20, n/30. The merchandise had cost Expert Computers $32,600. 5. Collected cash from the account receivable within the discount period. 6. Paid $9,900 cash for operating expenses. 7. Paid the balance due on accounts payable. The payment was not made within the discount period. Required a. Record the events in a horizontal statements model below. In the Cash Flows column, use the letters OA to designate operating activity, IA for investing activity, FA for financing activity, or NC for net change in cash. If the account is not affected by the event,…
- Newman Consulting Company maintains its records on a cash basis. During 2016 the following cash flows were recorded: cash received from customers, $420,000; and cash paid for salaries, utilities, and advertising, $240,000, $35,000, and $12,000, respectively. You also determine that customers owed the company $52,000 and $60,000 at the beginning and end of the year, respectively, and that the company owed the utility company $6,000 and $4,000 at the beginning and end of the year, respectively. Determine accrual net income for the year.mework i Baird Company began operations on January 1, Year 1, by issuing common stock for $34,000 cash. During Year 1, Baird received $53,100 cash from revenue and incurred costs that required $38,100 of cash payments. Problem 10-26A (Algo) Part b Prepare a GAAP-based income statement and balance sheet for Baird Company for Year 1, under the following independent scenario: b. Baird is in the car rental business. The $38,100 was paid to purchase automobiles. The automobiles were purchased on January 1, Year 1, and have three-year useful lives, with no expected salvage value. Baird uses straight-line depreciation. The revenue was generated by leasing the automobiles. Complete this question by entering your answer in the tabs below. Income Statement 2 Prepare an Income Statement. W Balance Sheet S BAIRD COMPANY Income Statement for Year 1 7 3 E D 4 $ $ R D F 0 0 % 5 * 8 J 1 ( 9 K O 0 L P Help >During the year, the Flight Company experienced the following accounting transactions: 1. Issued common stock in the amount of $150,0002. Paid a $30,000 cash dividend3. Borrowed $25,000 from a bank4. Made a principal payment of $3,500 on an outstanding bank loan5. Made an interest payment of $1,200 on an outstanding bank loan Using the accounting equation, record each of the transactions in columnar format using the following template:Use negative signs with answers, when appropriate.
- You will prepare the following for the business described above: a) Income Statement b) Statement of Cashflow ( direct method) Use the following information to prepare the various statements: 3. After the first three months of doing business, you want to calculate some ratios to see how your business is doing. You are considering a loan in the amount of $20,000 to upgrade your store/ office and you want to make sure that you can afford the loan payments ($750 per month for 3 years). Use the income statement you created in part 2 of this assignment and calculate at least two ratios that can be calculated from an income statement (Hint: not all ratios can be calculated from an income statement!) Based on your calculations, comment on whether or not you should take out the loan for $20,000. Be specific and explain your decision in detail! (this includes the calculations, why you chose them and what they represent). Use the following information to prepare the various statements: Date…In its first year of operations, Roma Company reports the following. ∙ Earned revenues of $45,000 ($37,000 cash received from customers). ∙ Incurred expenses of $25,500 ($20,250 cash paid toward them). ∙ Prepaid $6,750 cash for costs that will not be expensed until next year. Compute Roma’s first-year net income under the cash basis and the accrual basis of accounting.In Year 1, Lee Inc. billed its customers $56,200 for services performed. The company collected $41,800 of the amount billed. Lee incurred $37,700 of other operating expenses on account. Lee paid $24,100 of the accounts payable. Lee acquired $39,000 cash from the issue of common stock. The company invested $14,000 cash in the purchase of land. (Hint: Identify the six events described in the paragraph and record them in general ledger accounts under an accounting equation before attempting to answer the questions.) Use the preceding information to answer the following questions: a. What amount of revenue will Lee report on the Year 1 income statement?b. What amount of cash flow from revenue will be reported on the statement of cash flows?c. What is the net income for the period?d. What is the net cash flow from operating activities for the period?f. What is the amount of net cash flow from investing activities?g. What is the amount of net cash flow from financing activities?h. What…