Question
1. During 2014, Serenity Creek Spa reported revenue of $21,000. Total expense for the year were $14,000. Serenity Creek Spa ended the year with total
1. During 2014, Serenity Creek Spa reported revenue of $21,000. Total expense for the year were $14,000. Serenity Creek Spa ended the year with total assets of $30,000, and it owed debts totaling $14,000. At end-year 2013, the business reported total assets of $23,000 and total liabilities of $14,000
Requirements
a. Compute Serenity Creek Spas net income for 2014
b. Did Serenity Creek Spas stockholders equity increase or decrease during 2014? How much?
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Intermediate Accounting
Authors: James D. Stice, Earl K. Stice, Fred Skousen
16th Edition
324376375, 0324375743I, 978-0324376371, 9780324375749, 978-0324312140
