Solution-Prepare a calculation to show how much net income

Prepare a calculation to show how much net income

Reference no: EM13891060

The accounting records of Tama Co. show the following assets and liabilities as of December 31, 2012 and 2013.

1866_267-B-A-T-D (1253).png

Late in December 2013, the business purchased a small office building and land for $300,000. It paid $50,000 cash toward the purchase and a $250,000 note payable was signed for the balance. Joe Tama, the owner, had to invest an additional $15,000 cash to enable it to pay the $50,000 cash toward the purchase.
The owner withdraws $250 cash per month for personal use.

Required:
1. Prepare balance sheets for the business as of December 31, 2012 and 2013. 2. By comparing equity amounts from the balance sheets and using the additional information presented in the problem, prepare a calculation to show how much net income was earned by the business during 2013.
3. Calculate the December 31, 2013, debt ratio (in percent and rounded to onedecimal).

Reference no: EM13891060

Questions Cloud

What if you use the geometric average growth rate : Suppose Stark Ltd. just issued a dividend of $1.91 per share on its common stock. The company paid dividends of $1.60, $1.66, $1.73, and $1.84 per share in the last four years.

What expenses should be recognized for lease on the income : What expenses (include amounts) should be recognized for this lease on the income statement for the year ended December 31, 2013?

What is the sellers expected revenue in both auctions : What is the seller's expected revenue in both auctions and does revenue equivalence still hold?

Discuss the importance of maintaining professional : Discuss the importance of maintaining professional and personal boundaries and refer to the ACA and AMHCA's ethics and standards or other references to support your discussion. Provide specific examples to illustrate your ideas.

Prepare a calculation to show how much net income : The accounting records of Tama Co. show the following assets and liabilities as of December 31, 2012 and 2013.

What depreciation method is apparently being used : What the original cost of the machine was. What depreciation method is apparently being used. Explain your answer. When the machine was acquired.

Discuss a client situation where inadvertently misused : Discuss briefly a client situation where you inadvertently misused self-disclosure, as well as a situation where your self-disclosure strengthened the therapeutic relationship. What were the short-term outcomes for each of these situations?

What is its return on assets : The Fischer Sport Store has sales of $525,300, costs of goods sold of $305,500, accounts receivable of $57,600, and inventory of $109,100. How many days, on average, does it take the firm to sell its inventory assuming that all sales are on credit?

What does the phrase one short sleep past mean : In Donne's sonnet, what does the phrase "one short sleep past" mean

User Account

All Pages

Prepare a calculation to show how much net income

Reference no: EM13891060

Reference no: EM13891060

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

In calculating allowance for doubtful debts last year year

Critically analyse complex issues in theory development

Theory of interest - term structure of interest rates

What net income or net loss per share would company report

Seaver corporation manufactures mountain bikes it has fixed

Assume a corporation has earnings before depreciation and

If you were a small business owner would you implement an

What is betty gross estate

Goldberg corp is thinking about opening a soccer camp in

It is important to properly classify and report current and

How are permanent funds different from fiduciary funds

Pankratov lakes is a new recreational real estate

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT