Please see attached pic from our hw answer key. I don't understand why question d,e,and f are consider income. Orignally, I left them blank. I also don't understand why the unused on question e and the unpaid on question f calcuated diffrenlty. Thank you. Computation ofSummary of TransactionsIncomeCashServices performed for customers, $66,000, of which $11,000 remaineduncollected at the end of the quarter.b. Cash borrowed from the local bank, $56,000 (one-year note).$66,000 $55,000a.56,000Small service truck purchased at the end of the quarter to be used in theC.(12,500)business for two years starting the next quarter: cost, $12,500 cash.Wages earned by employees, $25,000, of which one-half remainedd.(25,000)(12,500)unpaid at the end of the quarter.Service supplies purchased for use in the business, $3,800 cash, of whichе.$900 were unused (still on hand) at the end of the quarter.(2,900)(3,800)Other operating expenses, $38,000, of which $6,500 remained unpaid atf.(38,000)(31,500)the end of the quarter.g. Based only on these transactions, compute the following for the quarter:Income (or loss)$100Cash inflow (or outflow)$50,700:%24

Computation of income is revenues less expenses. Net Income = Revenue - Expenses Cash inflow and…

Summary of Transactions Services performed for customers, $66,000, of which $11,000 remained uncollected at the end of the quarter. Cash borrowed from the local bank, $56,000 (one-year note). Small service truck purchased at the end of the quarter to be used in the usiness for two years starting the next quarter: cost, $12,500 cash.

Summary of Transactions Services performed for customers, $66,000, of which $11,000 remained uncollected at the end of the quarter. Cash borrowed from the local bank, $56,000 (one-year note). Small service truck purchased at the end of the quarter to be used in the usiness for two years starting the next quarter: cost, $12,500 cash.

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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Question

Please see attached pic from our hw answer key.

I don't understand why question d,e,and f are consider income. Orignally, I left them blank.

I also don't understand why the unused on question e and the unpaid on question f calcuated diffrenlty.

Thank you.

Computation of
Summary of Transactions
Income
Cash
Services performed for customers, $66,000, of which $11,000 remained
uncollected at the end of the quarter.
b. Cash borrowed from the local bank, $56,000 (one-year note).
$
66,000 $
55,000
a.
56,000
Small service truck purchased at the end of the quarter to be used in the
C.
(12,500)
business for two years starting the next quarter: cost, $12,500 cash.
Wages earned by employees, $25,000, of which one-half remained
d.
(25,000)
(12,500)
unpaid at the end of the quarter.
Service supplies purchased for use in the business, $3,800 cash, of which
е.
$900 were unused (still on hand) at the end of the quarter.
(2,900)
(3,800)
Other operating expenses, $38,000, of which $6,500 remained unpaid at
f.
(38,000)
(31,500)
the end of the quarter.
g. Based only on these transactions, compute the following for the quarter:
Income (or loss)
$
100
Cash inflow (or outflow)
$
50,700:
%24

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