PROBLEMS Problem 81 (25 Pts The following are all of the accounts of flaherty Co
ID: 2342277 • Letter: P
Question
PROBLEMS Problem 81 (25 Pts The following are all of the accounts of flaherty Company that have a balance at the end of August. All Aocounts reoeivable... $36,0 accounts have normal balances $36,000 Cash.$27,000 Cash. $27,000 Service revenues carned 7 Rent expensc Office supplic1,500 Accounts payable 75,000 3,600 J. Flaherty, Withdrawals 24,000 ,500 Salaries axpense 30,000 22,000 J. Flaherty, Capital....58,100 a. Calculate net income by preparing simple but proper income statement (use the space below) (10 Pts.) b. Prepare the Statement of Owner's Equity to show the Ending Capital balance that should be reported on August 31* Flaherty Company's Balance Sheet. (5 Pts.)Explanation / Answer
Answer
Flaherty Company
Income Statement
for the year ended 31 Aug
Revenues:
Service revenue earned
$ 75,000.00
Expenses:
Rent Expenses
$ 3,600.00
Advertising expenses
$ 5,000.00
Salaries expenses
$ 30,000.00
Total Expenses
$ 38,600.00
Net Income (Loss)
$ 36,400.00
Flaherty Company
Statement of Owner's Equity
31-Aug
J. Flaherty, Capital Beginning balance
$ 58,100.00
Net Income
$ 36,400.00
J. Flaherty, Withdrawals
$ (24,000.00)
Net Increase (decrease) in Capital balance
$ 12,400.00
J. Flaherty, Capital Ending balance
$ 70,500.00
Flaherty Company
Income Statement
for the year ended 31 Aug
Revenues:
Service revenue earned
$ 75,000.00
Expenses:
Rent Expenses
$ 3,600.00
Advertising expenses
$ 5,000.00
Salaries expenses
$ 30,000.00
Total Expenses
$ 38,600.00
Net Income (Loss)
$ 36,400.00
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.