Intermediate Accounting 1 e3-12

Intermediate Accounting 1 e3-12 - Total Assets $64,000.00...

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Flynn Design Agency Income Statement December 21,2012 Revenues Service Revenue $58,500.00 Expenses Salaries and Wages Expense $12,300.00 Depreciation Expense $7,000.00 Rent Expense $4,000.00 Supplies Expense $3,400.00 Insurance Expense $850.00 Interest Expense $500.00 Total Expense $28,050.00 Net Income $30,450.00 Flynn Design Agency Statement of Retained Earnings December 21,2012 Retained earnings, January 1 $3,500.00 Add: Net Income $30,450.00 Retained earnings, December 31 $33,950.00 Flynn Design Agency Balance Sheet December 21,2012 Assets Cash $10,000.00 Accounts Receivable $21,500.00 Supplies $5,000.00 Prepaid Insurance $2,500.00 Equipment $60,000.00 0 Less: Accumulated depreciation--Equipment $(35,000.00) $25,000.00
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Unformatted text preview: Total Assets $64,000.00 Liabilities and Stockholders' Equity Liabilities Notes Payable $5,000.00 Accounts Payable $8,000.00 Unearned Service Revenue $5,600.00 Salaries and Wages Payable $1,300.00 Interest Payable $150.00 Total Liabilities $20,050.00 Stockholders' equity Common Stock $10,000.00 Retained earnings $33,950.00 $43,950.00 Total liabilities and stockholders' equity $64,000.00 1 Based on interest payable at December 31, 2012, interest is $25 per month or .5% of the note payable. .5% X 12 = 6% interest per year. 2 Salaries expense, 12300 less salaries payable 12/31/12, 1300= 11000. Total payments, 17500 - 11000= 6500 salaries payable 12/31/11....
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This note was uploaded on 11/13/2011 for the course ECON 201 taught by Professor Bonistis during the Spring '11 term at NJIT.

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