Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If possible can you explain how you did it? Part 2: Below is a fact scenario. Using the box provided to the right, prepare an

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

If possible can you explain how you did it?

Part 2: Below is a fact scenario. Using the box provided to the right, prepare an Income Statement for Carrie's Catering Service for the year ending December 31, 2019, demonstrating that Carrie earned income of $91,500. Assume the company is not subject to income tax. You are expected to provide at least 5 separate expense accounts. During the spring semester of her senior year, Carrie decided to open a catering business. She created her business in December 2018 by investing $15,000 of her own money and she borrowed $10,000 from the bank by signing a two-year note payable promising to pay interest every 12 months with the first interest payment due December 31, 2019. On January 1, 2019 she rented a small kitchen space and purchased a stove, supplies, and food. At the end of 2019 Carrie had no supplies or food left over. A review of the checkbook showed the following: Bank deposits of collections from customers totaled $100,000. The following checks had been written: disposable plates and utensils, $7,000; food, $11,000; buying a used stove $5,000; workers' wages, $10,000; interest on the loan, $500; cell phone bill, $1,000; rent, $5,000. kont in the kitchen reflecto the following A notebook kept in the kitchen reflected the following: Customers still owed her $30,000 for catering services already rendered and she owed $3,000 for disposable plates and utensils (credit card charges). In addition, Carrie estimated that she used up one fifth of the stove during 2019

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Credentialing Audits Tools For Compliance And Reduced Liability

Authors: CPMSM Vicki L. Searcy

1st Edition

1578398584, 978-1578398584

More Books

Students also viewed these Accounting questions

Question

4 How can you create a better online image for yourself?

Answered: 1 week ago