Jessie Nelson T Account Solutions

Jessie Nelson T Account Solutions - YEAR ENDED DECEMBER 31,...

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Balance Sheet Accounts Accumulated Depreciation Cash Accounts Receivable Equipment (a contra asset) (1) 10,000 (6) 190,000 (3) 25,000 8,000 (13) (2) 20,000 2,000 -2 115,000 (6) 25,000 8,000 25,000 (3) 6,500 (12) 10,800 (4) 68,500 3,500 (5) (6) 115,000 18,000 (7) 17,000 (8) 19,000 (9) 21,600 (10) (14) Supplies (5) 3,500 28,100 2,750 (11) 750 Accounts Payable Notes Payable 8,000 (7) 20,000 (2) 5,000 (8) 20,000 13,000 Additional Common Stock Paid-in Capital Retained Earnings 1,000 (1) 9,000 (1) net income 71,350 1,000 9,000 71,350 [from income statement] Asset accounts have debit balances Liability accounts have credit balances Equity accounts have credit balances
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Income Statement Accounts Consulting Revenues 190,000 (6) 190,000 Interest Expense Depreciation Expense Supplies Expense Rent Expense (14) 2,000 (13) 8,000 (11) 2,750 (4) 10,800 2,000 8,000 2,750 10,800 Wage Expense Advertising Expense 21,600 26,000 Bad Debt Expense Income Tax Expense (10) 21,600 (7) 26,000 (12) 6,500 (9) 19,000 6,500 19,000 Administrative Expenses 22,000 (8) 22,000 Revenue accounts have credit balances Expense accounts have debit balances
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NELSON CONSULTING INCOME STATEMENT
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Unformatted text preview: YEAR ENDED DECEMBER 31, 2006 CONSULTING REVENUES $190,000 OPERATING EXPENSES INTEREST EXPENSE $2,000 DEPRECIATION EXPENSE $8,000 SUPPLIES EXPENSE $2,750 RENT EXPENSE $10,800 WAGE EXPENSE $21,600 ADVERTISING EXPENSE $26,000 BAD DEBT EXPENSE $6,500 ADMINISTRATIVE EXPENSE $22,000-$99,650 INCOME BEFORE INCOME TAXES $90,350 INCOME TAX EXPENSE $19,000 NET INCOME $71,350 NELSON CONSULTING BALANCE SHEET AS OF DECEMBER 31, 2008 ASSETS LIABILITIES CURRENT ASSETS CURRENT LIABILITIES CASH $28,100 ACCOUNTS PAYABLE $13,000 ACCOUNTS RECEIVABLE $68,500 SUPPLIES $750 LONG TERM LIABILITIES TOTAL CURRENT ASSETS $97,350 NOTE PAYABLE $20,000 TOTAL LIABILITIES $33,000 LONG TERM ASSETS STOCKHOLDERS EQUITY EQUIPMENT $25,000 COMMON STOCK $1,000 LESS ACCUM. DEPRECIATION-$8,000 ADD'L PAID IN CAPITAL $9,000 NET BOOK VALUE $17,000 RETAINED EARNINGS $71,350 TOTAL ASSETS $114,350 TOTAL LIABILITIES AND STOCKHOLDERS EQUITY $114,350...
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Jessie Nelson T Account Solutions - YEAR ENDED DECEMBER 31,...

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