During 2024, Peaceful River Spa reported revenue of $50,000. Total expenses for the year were $32,000....

 

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During 2024, Peaceful River Spa reported revenue of $50,000. Total expenses for the year were $32,000. Peaceful River Spa ended the year with total assets of $38,000, and it owed debts totaling $10,000. At year-end 2023, the business reported total assets of $20,000 and total liabilities of $10,000. Requirement 1. Compute Peaceful River Spa's net income for 2024. Begin by identifying the formula to calculate net income and then enter the amounts to solve for net income. Revenues $ 50,000 Expenses = Net Income $ 32,000 = $ 18,000 Requirement 2. Did Peaceful River Spa's owner's equity increase or decrease during 2024? By how much? 1 During 2024, Peaceful River Spa reported revenue of $50,000. Total expenses for the year were $32,000. Peaceful River Spa ended the year with total assets of $38,000, and it owed debts totaling $10,000. At year-end 2023, the business reported total assets of $20,000 and total liabilities of $10,000. Requirement 1. Compute Peaceful River Spa's net income for 2024. Begin by identifying the formula to calculate net income and then enter the amounts to solve for net income. Revenues $ 50,000 Expenses = Net Income $ 32,000 = $ 18,000 Requirement 2. Did Peaceful River Spa's owner's equity increase or decrease during 2024? By how much? 1

Answer rating: 100% (QA)

Net income can be computed as Revenue Expense Net Income for 202... View the full answer