Reference no: EM131139217
Happy Camper Park was organized on April 1, 2009, by Amaya Berge. Amaya is a good manager but a poor accountant. From the trial balance prepared by a part-time bookkeeper, Amaya prepared the following income statement for the quarter that ended March 31, 2010.
.PNG)
Amaya thought that something was wrong with the statement because net income had never exceeded $20,000 in any one quarter. Knowing that you are an experienced accountant, she asks you to review the income statement and other data. You first look at the trial balance. In addition to the account balances reported above in the income statement, the ledger contains the following additional selected balances at March 31, 2010.
Supplies......... $ 6,200
Prepaid Insurance... 7,200
Notes Payable..... 12,000
You then make inquiries and discover the following.
1. Rental revenues include advanced rentals for summer occupancy $15,000.
2. There were $1,700 of supplies on hand at March 31.
3. Prepaid insurance resulted from the payment of a one-year policy on January 1, 2010.
4. The mail on April 1, 2010, brought the following bills: advertising for week of March 24, $110; repairs made March 10, $260; and utilities, $180.
5. There are four employees, who receive wages totaling $300 per day. At March 31, 2 days' wages have been incurred but not paid.
6. The note payable is a 3-month, 10% note dated January 1, 2010.
Instructions
With the class divided into groups, answer the following.
(a) Prepare a correct income statement for the quarter ended March 31, 2010.
(b) Explain to Amaya the generally accepted accounting principles that she did not recognize in preparing her income statement and their effect on her results.
|
What happens in a recessionary phase of the business cycle
: Discuss what happens in a recessionary phase of the business cycle with respect to borrowing, liquidity and psychological outlook.
|
|
What are the characteristics of a pc firm
: Using Hot Dogs, Graph the market and the individual supply, demand and costs for Hot dogs side by side. Make sure to include the S.R. and L.R profits
|
|
What will be the effect on the level of investment by firms
: What happens to the equilibrium real interest rate and the quantity of loanable funds? What will be the effect on the level of investment by firms and the economy's capital stock in the future?
|
|
In reviewing the accounts of keri ann company
: Write a memo to Keri Ann Nickels, the owner of Keri Ann Co. that explains the following: the nature and purpose of adjusting entries, why adjusting entries are needed, and the types of adjusting entries that may be made.
|
|
Happy camper park was organized on april 1
: (b) Explain to Amaya the generally accepted accounting principles that she did not recognize in preparing her income statement and their effect on her results.
|
|
How a federally funded project might be wasteful
: Explain how a Federally funded project might be wasteful from a national perspective, yet still be highly beneficial for a specific city or state.
|
|
What acute angle does the pier form with the shoreline
: What acute angle (correct to the nearest 0.1 degree) does the pier form with the shoreline? Is there more than one possibility? if so how can we know which is the correct one
|
|
What is the cardiac output over a period of one minute
: Blood Flow. A typical human heart pumps 70mL of blood with each stroke (stroke volume). What is the cardiac output over a period of 1 min. (use calculus, the check answers with algebra
|
|
How the anual report spends on rand d
: It talks about what sells during what time of year, and its typical customer (stores, wholesalers, and other distributors). It also breaks down the competition and how it spends on R&D.
|