Healy Corporation recorded service revenues of $100,000 in 2018, of which $70,000 were for credit and $30,000
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Healy Corporation recorded service revenues of $100,000 in 2018, of which $70,000 were for credit and $30,000 were for cash. Moreover, of the $70,000 credit sales, it collected $20,000 cash on those receivables before year-end. The company also paid $60,000 cash for 2018 wages.
a. Compute the company's net income for 2018.
b. Suppose you discover that employees had earned an additional $10,000 in wages in 2018, but this amount had not been paid. Would 2018 net income change? If so, by how much?
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Related Book For
Financial Accounting
ISBN: 9781618533111
6th Edition
Authors: Michelle L. Hanlon, Robert P. Magee, Glenn M. Pfeiffer, Thomas R. Dyckman
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