As of November 30, 2024, the financial records of Emerald Bay Co. include the following balances: the capital account had a credit balance of $310,000, drawings were $22,000, sales amounted to $550,000, purchases totaled $260,000, wages were $65,000, utilities expenses were $12,000, rent was $20,000, miscellaneous expenses were $10,000, and the profit and loss account showed a credit of $14,000. Calculate the net income for Emerald Bay Co.
Requirements:
1.Calculate total debits and credits.
2.Determine the net income.
3.Evaluate the role of rent expenses.
4.Suggest ways to reduce miscellaneous expenses.