Question
Revenue and Expense Recognition Security Specialists performs security services for local businesses. During 2019, Security Specialists performed $1,425,700 of security services and collected $1,445,000 cash
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Revenue and Expense Recognition
Security Specialists performs security services for local businesses. During 2019, Security Specialists performed $1,425,700 of security services and collected $1,445,000 cash from customers. Security Specialists' employees earned salaries of $82,350 per month. During 2019, Security Specialists paid salaries of $980,200 cash for work performed. At the beginning of 2019, there were $2,875 of supplies on hand. Supplies of $65,800 were purchased during the year, and $9,225 of supplies were on hand at the end of the year. Other general and administrative expenses incurred during the year were $26,500.
Required:
1. Calculate revenue for 2019. $
Calculate expenses for 2019. $
2. Prepare the 2019 income statement.
Security Specialists Income Statement For the Year Ended December 31, 2019 $ Expenses: $ $
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Revenue and Expense Recognition
Security Specialists performs security services for local businesses. During 2019, Security Specialists performed $1,425,700 of security services and collected $1,445,000 cash from customers. Security Specialists' employees earned salaries of $82,350 per month. During 2019, Security Specialists paid salaries of $980,200 cash for work performed. At the beginning of 2019, there were $2,875 of supplies on hand. Supplies of $65,800 were purchased during the year, and $9,225 of supplies were on hand at the end of the year. Other general and administrative expenses incurred during the year were $26,500.
Required:
1. Calculate revenue for 2019. $
Calculate expenses for 2019. $
2. Prepare the 2019 income statement.
| Security Specialists | ||
| Income Statement | ||
| For the Year Ended December 31, 2019 | ||
| $ | ||
| Expenses: | ||
| $ | ||
| $ | ||
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
12th Edition
978-0073526706, 9780073526706
