Three individuals organized Pest B-Gone Professionals on January 1, 2014, to provide insect extermination services. The company
Question:
Three individuals organized Pest B-Gone Professionals on January 1, 2014, to provide insect extermination services. The company paid dividends of $10,000 during the year. At the end of 2014, the following income statement was prepared:
Required:
1. What was the amount of average monthly revenue?
2. What was the average amount of monthly salaries and wages expense?
3. Explain why advertising is reported as an expense.
4. Explain why the dividends are not reported as an expense.
5. Can you determine how much cash the company had on December 31, 2014? Answer yes or no, and explain your reasoning.
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Related Book For
Fundamentals of Financial Accounting
ISBN: 978-1259103292
4th Canadian edition
Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh
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