5 McMann Company has a condensed income statement as shown::

	2011	2010
Sales	$178,400	$162,500
Wage expenses	100,000	92,500
Rent expenses	33,000	30,000
Utilities expenses	30,000	25,000
Total operating expenses	163,000	147,500
Net income	15,400	15,000

REQUIRED:

Prepare a horizontal analysis of McMann Companys income statements. Comment on the trends, both favorable and unfavorable.

6. Record the following selected transactions for April in a two-column journal, identifying each entry by letter:

(a)	Received $18,000 from Katie Long, owner.
(b)	Purchased equipment for $27,000, paying $10,000 in cash and giving a note payable for the remainder.
(c)	Paid $2,300 for rent for April.
(d)	Purchased $1,500 of supplies on account.
(e)	Recorded $9,800 of fees earned on account.
(f)	Received $7,500 in cash for fees earned.
(g)	Paid $1,200 to creditors on account.
(h)	Paid wages of $3,425.
(i)	Received $7,900 from customers on account.
(j)	Recorded owner's withdrawal of $1,875.

7. On November 10th, JumpStart Co. provides $2,900 in services to clients. At the time of service, the clients paid $600.00 in cash and put the balance on account.

(a) Journalize this event.

(b) On November 20th, JumpStart Co. clients paid an additional $900 on their accounts due. Journalize this event.

(c) Calculate the amount of accounts receivable on November 30th.