Week 1 Assignment-ACC557
Please finish Chapter 1 BYP1-4 and submit to the Dropbox.
a) The loss of $6, 75 was depending on the difference between the amount put in of $25, 000 as well as the bank harmony of $18, 900 for March thirty-one. This is not valid for identifying income since it only reveals the change in cash among to factors in time.
b) Using the balance sheet to conclude the net profits is certainly not valid because there is no net gain on the balance sheet. You get the net income in the income declaration and that goes on the balance sheet when you close the books for the year. It moves to the retained profits segment in the balance sheet. In March thirty-one the balance linen does not include the web income, thus far.
The balance linen at March 31 is just as follows:
Chip-Shot Driving Range Company
Current AssetsCurrent Liabilities
Funds $23, 800Accounts Payable $(850)
Unearned Revenues 1, 000
Total Current Assets 23, 800 Total Liabilities 150 Investments 25, 000
Property, Flower & Products
Buildings 8, 000STOCKHOLDERS' COLLATERAL
Equipment 800 Common Inventory 25, 000
Prop, Grow & Equip-net 8, 800 Retained Earnings 9650 Total Assets $57, 600 Total Liab. & Stockholders Equity $34, 800
c) The Grays genuine net income intended for March is:
Net income = $ twenty-five, 000 & 18, 900 +(1, 1000 -8, 000 - 800 - one particular, 000 - 750 -400 -100) = $ 43, 900 – 10, 050 = dollar 33, eight hundred fifty
d) The revenue attained in Mar was $8, 850. ($18, 900 - $10, 050) Total earnings earned coming from customers – total bills for March.
Assets Debts Stockholders' Collateral Cash Products Equipment Accounts Common Gained...