Anya and Nick Ramon, local golf stars, opened the Chip-Shot Driving Range on March 1, 2017, by
Question:
Anya and Nick thought they had a pretty good first month of operations. But, their estimates of profitability ranged from a loss of $6,100 to net income of $2,480.
Instructions
With the class divided into groups, answer the following.
(a) How could the Ramons have concluded that the business operated at a loss of $6,100? Was this a valid basis on which to determine net income?
(b) How could the Ramons have concluded that the business operated at a net income of $2,480?
(c) Without preparing an income statement, determine the actual net income for March.
(d) What was the revenue recognized in March?
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Related Book For
Accounting Principles
ISBN: 978-1118875056
12th edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
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