Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information The following information applies to the questions displayod below] Nicole Mackisey is thinking of forming her own spa business, Nicole's Getaway Spo (NGS).

image text in transcribed
image text in transcribed
Required information The following information applies to the questions displayod below] Nicole Mackisey is thinking of forming her own spa business, Nicole's Getaway Spo (NGS). Nicole expects that she and two family members will each contribute $11,000 to the business and receive 1,000 shares each. Nicole forecasts the following amounts for the first year of operations, ending December 31,2021 : Cash on hand and in the bank, $2.750 : amounts due from customers from spa treatments, $1,840; building and equipment, $76,000; amounts owed to beauty supply outlets for spa equipment, $4,720; notes payable to a local bank for $39,470. Cash dividends of $8,000 will be paid to the stockholders during the year. Nicole also forecasts that first-year sales revenues will be $58,600;; wages will be $27,000; the cost of supplies used up will be $10,000; office expenses will be $8,000; and income taxes will be $2,200. 3. Prepare a (forecasted) balance sheet for Nicole's Getaway Spa at December 31, 2021. 3. Prepare a (forecasted) balance sheet for Nicole's Getaway Spa at December 31, 2021

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

Cost Accounting College Version

Authors: Steven M. Bragg

1st Edition

1938910702, 978-1938910708

More Books

Students also viewed these Accounting questions

Question

the cash ledger accounts can used in adjusting entries?

Answered: 1 week ago

Question

List the advantages and disadvantages of the pay programs. page 536

Answered: 1 week ago