Question
Accounts Receivable $20,000 Cost of Goods Sold 95,000 Utilities Expense 3,500 Accounts Payable 7,000 Common Stock 100,000 Rent Expense 5,500 Advertising Expense 9,000 Dividends 10,000
| Accounts Receivable | $20,000 |
| Cost of Goods Sold | 95,000 |
| Utilities Expense | 3,500 |
| Accounts Payable | 7,000 |
| Common Stock | 100,000 |
| Rent Expense | 5,500 |
| Advertising Expense | 9,000 |
| Dividends | 10,000 |
| Insurance Expense | 2,000 |
| Note Payable (due 2014) | 50,000 |
| Depreciation Expense | 10,000 |
| Prepaid Insurance | 18,000 |
| Accumulated Depreciation | 30,000 |
| Retained Earnings (beginning) | 33,000 |
| Salaries Expense | 40,000 |
| Salaries Payable | 4,500 |
| Net sales | 170,000 |
| Supplies | 3,000 |
| Supplies Expense | 2,500 |
Instructions
(a) Calculate the net income. (18 points)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Computer Accounting
Authors: Donna Kay
14th Edition
007762453X, 9780077624538
