Mastery Module Start part 3

Mastery Module Start part 3 - Amount of Net Income=$16,250...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
[Type text] [Type text] Categories that can be found on an income statement: Revenues, Gains, Expenses, Losses Owners Equity, Liabilities, Assets Which accounts would be classified as assets? Inventory, Accounts Receivable, Cash, Equipment Sales Revenues, Retained Earnings, Notes Payable, Cost of Sales Which accounts are liabilities? Accounts Payable, Notes Payable, Wages Payable, Accrued Interest Payable Selling Expenses, Wage Expenses, Retained Earnings, Cost of Sales Which Accounts would be found on the income statement? Wage Expense, Cost of Sales, Selling Expenses, Sales Revenue Accounts Payable, Wages Payable, Notes Payable, Retained Earnings Buckley Bookstore opened in 2007. Buckley’s sales were $45,000 of which $40,000 was collected by the end of the year. Buckley purchased equipment for $3,000 and also during the year incurred expenses of $28,750. What is the value for Buckley’s 2007 Net income?
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Amount of Net Income=$16,250 Simply done by taking Buckley’s Sales and subtracting his incurred expenses $45,000 - $28,750 = $16,250 Carilli Collections, a professional service firm began operations on April 1, 2008. Here are its account balances on April 30, 2008: Accounts Payable $3,200 Accounts Receivable $1,000 Cash $4,000 Depreciation Expense $580 Equipment $14,000 Interest Expense $120 Notes Payable $10,000 Service Revenue $22,000 Selling Expense $5,000 Wage Expense $11,000 Wages Payable $500 Sales Revenue (-) Rent Expense(-) Wage Expense(-) Cost of Sales=Net Income Calculate Charilli’s Net income for April 2008 Amount of Net Income: $5300 [Type text] [Type text] I got this answer correct by taking Service revenue – Wage Expenses – Selling Expense – Interest Expense – Depreciation Expense So it turns into: 22,000 – 11,000 – 5,000 – 120 – 580 =$5,300...
View Full Document

This note was uploaded on 07/16/2011 for the course ACCT 212 taught by Professor Song during the Spring '11 term at DeVry Kansas City.

Page1 / 3

Mastery Module Start part 3 - Amount of Net Income=$16,250...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online