Assets Claims Cash $61,000 Accounts Payable $25,000 Accounts Receivable 45,000 C
ID: 2387244 • Letter: A
Question
Assets Claims
Cash $61,000 Accounts Payable $25,000
Accounts Receivable 45,000 Common Stock 90,000
Land 27,000 Retained Earnings 18,000
Totals $133,000 $133,000
The following accounting events apply to Oaks’s 2011 fiscal year:
Jan. 1 Acquired an additional $70,000 cash from the issue of common stock.
April 1 Paid $6,600 cash in advance for a one-year lease for office space.
June 1 Paid a $3,000 cash dividend to the stockholders.
July 1 Purchased additional land that cost $25,000 cash.
Aug. 1 Made a cash payment on accounts payable of $13,000.
Sept. 1
Received $8,400 cash in advance as a retainer for services to be
performed monthly during the next eight months.
Sept. 30 Sold land for $15,000 cash that had originally cost $15,000.
Oct. 1 Purchased $900 of supplies on account.
Dec. 31 Earned $80,000 of service revenue on account during the year.
31 Received $66,000 cash collections from accounts receivable.
31 Incurred $16,000 other operating expenses on account during the year.
31 Recognized accrued salaries expense of $5,000.
31 Had $250 of supplies on hand at the end of the period.
31 The land purchased on July 1 had a market value of $28,000.
Net cash flows from operating activities:
What amount of total expenses would Oaks report on the income statement?
What total amount of service revenues would Oaks report on the income statement?
Explanation / Answer
What amount of total expenses would Oaks report on the income statement? Lease for office space for 9 months $4,950 Operating expense $16,000 Accrued salary expense $ 5,000 Supplied consumed during the period $ 650 Total expense $26,600 What total amount of service revenues would Oaks report on the income statement? Retainer ship fee for 4 months $4,200 Service revenue earned $80,000 Total service revenue $84,200
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