ACCT251P3-10Sol - *PROBLEM 3-10 (a) ARKANSAS SALES AND...

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*PROBLEM 3-10
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(a) ARKANSAS SALES AND SERVICE Income Statement For the Month Ended January 31, 2010 (1) Cash Basis (2) Accrual Basis Revenues $ 75,000 $98,400* Expenses Cost of computers & printers: Purchased and paid 82,500** Cost of goods sold 59,500*** Salaries 9,600 12,600 Rent 6,000 2,000 Other operating expenses 8,400 10,400 Total expenses 106,500 84,500 Net income (loss) $(31,500 ) $13,900 *($2,550 X 30) + ($3,600 X 4) + ($500 X 15) **($1,500 X 40) + ($2,500 X 6) + ($300 X 25)
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***($1,500 X 30) + ($2,500 X 4) + ($300 X 15)
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*PROBLEM 3-10 (Continued) (b) ARKANSAS SALES AND SERVICE Balance Sheet As of January 31, 2010 (1) Cash Basis (2) Accrual Basis Assets Cash $58,500 a $ 58,500 a Accounts Receivable 23,400 Inventory 23,000 b Prepaid rent 4,000 Total assets $58,500 $108,900 Liabilities and Owners’ Equity Salaries payable $ 3,000 Accounts payable 2,000 Owners’ equity $58,500 c 103,900 d Total liabilities and owners’ equity $58,500 $108,900 a Original investment $ 90,000 Cash sales 75,000 Cash purchases (82,500) Rent paid (6,000)
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ACCT251P3-10Sol - *PROBLEM 3-10 (a) ARKANSAS SALES AND...

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