Show the income statement equation and define each element.

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Answer 1

Question

Chapter 3, Problem 1Q

To determine

Show the income statement equation and define each element.

Expert Solution & Answer

Explanation of Solution

Income statement:

An income statement is one of the financial statements which shows the revenues, and expenses of the company. The income statement is prepared to ascertain the net income/loss of the company, by deducting the expenses from the revenues.

Net income = Total revenues – Total expenses

Each element is defined as follows:

Expenses:

Expenses refer to the cost incurred on the necessary purchases of the fixed assets by the firm, or the production of the goods and services, during an accounting period. The expenses account shows a normal debit balance.

Revenues:

Revenue refers to the income received from the business activity or sale of the output, during an accounting period. The revenue account shows a normal credit balance.

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Talon Inc. has 12 employees, each earning an average of $195 per day, and they work 6 days a week. The company’s year-end is December 31. The employees were last paid on December 24 for the two weeks that ended on December 17. What is the wages and salary payable to record for December 31? Solve this

Answer 2

Question

Chapter 3, Problem 1Q

To determine

Show the income statement equation and define each element.

Expert Solution & Answer

Explanation of Solution

Income statement:

An income statement is one of the financial statements which shows the revenues, and expenses of the company. The income statement is prepared to ascertain the net income/loss of the company, by deducting the expenses from the revenues.

Net income = Total revenues – Total expenses

Each element is defined as follows:

Expenses:

Expenses refer to the cost incurred on the necessary purchases of the fixed assets by the firm, or the production of the goods and services, during an accounting period. The expenses account shows a normal debit balance.

Revenues:

Revenue refers to the income received from the business activity or sale of the output, during an accounting period. The revenue account shows a normal credit balance.

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Answer 3

Question

Chapter 3, Problem 1Q

To determine

Show the income statement equation and define each element.

Expert Solution & Answer

Explanation of Solution

Income statement:

An income statement is one of the financial statements which shows the revenues, and expenses of the company. The income statement is prepared to ascertain the net income/loss of the company, by deducting the expenses from the revenues.

Net income = Total revenues – Total expenses

Each element is defined as follows:

Expenses:

Expenses refer to the cost incurred on the necessary purchases of the fixed assets by the firm, or the production of the goods and services, during an accounting period. The expenses account shows a normal debit balance.

Revenues:

Revenue refers to the income received from the business activity or sale of the output, during an accounting period. The revenue account shows a normal credit balance.

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Answer 4

Question

Chapter 3, Problem 1Q

To determine

Show the income statement equation and define each element.

Expert Solution & Answer

Explanation of Solution

Income statement:

An income statement is one of the financial statements which shows the revenues, and expenses of the company. The income statement is prepared to ascertain the net income/loss of the company, by deducting the expenses from the revenues.

Net income = Total revenues – Total expenses

Each element is defined as follows:

Expenses:

Expenses refer to the cost incurred on the necessary purchases of the fixed assets by the firm, or the production of the goods and services, during an accounting period. The expenses account shows a normal debit balance.

Revenues:

Revenue refers to the income received from the business activity or sale of the output, during an accounting period. The revenue account shows a normal credit balance.

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Answer 5

Chapter 3, Problem 1Q

To determine

Show the income statement equation and define each element.

Expert Solution & Answer

Explanation of Solution

Income statement:

An income statement is one of the financial statements which shows the revenues, and expenses of the company. The income statement is prepared to ascertain the net income/loss of the company, by deducting the expenses from the revenues.

Net income = Total revenues – Total expenses

Each element is defined as follows:

Expenses:

Expenses refer to the cost incurred on the necessary purchases of the fixed assets by the firm, or the production of the goods and services, during an accounting period. The expenses account shows a normal debit balance.

Revenues:

Revenue refers to the income received from the business activity or sale of the output, during an accounting period. The revenue account shows a normal credit balance.

Answer 6

Chapter 3, Problem 1Q

To determine

Show the income statement equation and define each element.

Expert Solution & Answer

Explanation of Solution

Income statement:

An income statement is one of the financial statements which shows the revenues, and expenses of the company. The income statement is prepared to ascertain the net income/loss of the company, by deducting the expenses from the revenues.

Net income = Total revenues – Total expenses

Each element is defined as follows:

Expenses:

Expenses refer to the cost incurred on the necessary purchases of the fixed assets by the firm, or the production of the goods and services, during an accounting period. The expenses account shows a normal debit balance.

Revenues:

Revenue refers to the income received from the business activity or sale of the output, during an accounting period. The revenue account shows a normal credit balance.

Answer 7

Chapter 3, Problem 1Q

To determine

Show the income statement equation and define each element.

Answer 8

Expert Solution & Answer

Explanation of Solution

Income statement:

An income statement is one of the financial statements which shows the revenues, and expenses of the company. The income statement is prepared to ascertain the net income/loss of the company, by deducting the expenses from the revenues.

Net income = Total revenues – Total expenses

Each element is defined as follows:

Expenses:

Expenses refer to the cost incurred on the necessary purchases of the fixed assets by the firm, or the production of the goods and services, during an accounting period. The expenses account shows a normal debit balance.

Revenues:

Revenue refers to the income received from the business activity or sale of the output, during an accounting period. The revenue account shows a normal credit balance.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

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Show the income statement equation and define each element.

Show the income statement equation and define each element.

Explanation of Solution

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