Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Orange Ltd. had the following account balances at December 31, 2021: Account Name Amount Repair expense $1,375 Advertising expense 800 Prepaid expenses 1,200 Dividends 3,675
Orange Ltd. had the following account balances at December 31, 2021:
Account Name | Amount |
Repair expense | $1,375 |
Advertising expense | 800 |
Prepaid expenses | 1,200 |
Dividends | 3,675 |
Purchase of intangibles | 900 |
Cash (end of year) | 52,250 |
Deferred revenue | 1,375 |
Owner's capital | 24,000 |
Accounts payable | 18,625 |
Prepaid insurance | 1,800 |
Collections from customers | 45,650 |
Insurance expense | 2,300 |
Contributions by owners | 15,000 |
Accounts receivable | 22,075 |
Cash (beginning of year) | 6,775 |
Retained earnings (beginning of year) | 3,700 |
Interest expense | 750 |
Business licence | 60 |
Payment of dividends | 3,675 |
Website design | 840 |
Service revenue | 17,450 |
Cash received from debt | 25,000 |
Income tax expense | 2,600 |
Supplies | 1,125 |
Supplies expense | 350 |
Payments to suppliers | 35,600 |
Bank loan payable, due in 2025 | 25,000 |
Website expense | 650 |
Income tax payable | 1,700 |
Question 70
What is Profit before Income Tax (also called Income before Income Tax) on this company's single step income statement?
Question 71
What is Profit (also called Net Income) on this company's single step income statement?
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