Question

Clean Spot, Inc., started year 3 with $42,000 in its cash and common stock accounts. During year 3, Clean Spot paid $34,000 cash for employee compensation.

Required
Based on this information alone,
a. Determine the total amount of assets at the end of year 3, assuming Clean Spot is a manufacturing company and the employees were paid to make products.
b. Determine the amount of expense recognized on the year 3 income statement, assuming Clean Spot is a manufacturing company and the employees were paid to make products.
c. Determine the total amount of assets at the end of year 3, assuming Clean Spot is a service company.
d. Determine the amount of expense recognized on the year 3 income statement, assuming Clean Spot is a service company.



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  • CreatedFebruary 07, 2014
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