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Problem
PhilCo started year 2 with $115,000 in its cash and common stock accounts. During year 2 PhilCo paid $86,250 cash for employee compensation. Assume this is the only transaction that occurred in year 2.
A. Determine the total amount of assets at the end of year 2, assuming PhilCo is a manufacturing company and the employees were paid to make products.
B. Determine the amount of expense recognized on the year 2 income statement, assuming PhilCo is a manufacturing company and the employees were paid to make products.
C. Determine the total amount of assets at the end of year 2, assuming.
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