Minutemen Law Services maintains its books using cash-basis accounting. However, the company decides to borrow $100,000 from
Question:
Cash collected from customers .....................................$60,000
Cash paid for:
Salaries ................................$35,000
Supplies .................................3,000
Rent .....................................4,000
Insurance ...............................6,000
Utilities .................................2,000 .......................50,000
Net cash flows ......................................................$10,000
You are able to determine the following information:
................................................January 1, 2012 ...............December 31, 2012
Accounts Receivable .......................$20,000 ...............................$22,000
Prepaid Insurance ..............................-0- ....................................3,200
Supplies .......................................4,000 ..................................1,500
Salaries Payable ..............................2,200 ..................................3,400
In addition, depreciation on the company's equipment is $8,000 for the year.
Required:
Prepare an accrual-basis income statement for the year ended December 31, 2012? (Ignore income taxes.)
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Financial Accounting
ISBN: 9780078110825
2nd Edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
Question Posted: