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June Goodman had always wanted to open an advertising firm. Finally, at the beginning of 2014 she decided to leave the firm of Light, Dry and Cool and open her own firm. During the year 2014 the following transactions occurred
a. Fees earned during the year amounted to $140,000. By the end of the year $90,000 had been collected in cash, and the rest will be collected in 2004.
b. Operating expenses of $110,000 were incurred and paid in cash during the year.
c. Interest expense of $7,500 was paid on the loan the firm received from June's associates.
d. Taxes of $3,500 were incurred and remained unpaid at the end of the year.
e. Depreciation of $2,000 was recorded during 2015
The question is about accounting problems and based on ASAP form. It is about Cost Classification, HI/LO and Cost/Volume/Profit . Can you show detail information about the solution? Thank you .
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