Reference no: EM132480958

The firm's statement of retained earnings indicates that a $7,000 cash dividend was declared and paid during the current year.

Question a. Prepare the necessary closing entries on December 31, current year.

Question b. If the firm's Retained earnings account had a $93,000 balance on January 1, current year, at what amount should Retained earnings be reported in the firm's balance sheet dated December 31, current year?

Revenue: Counseling revenue $440,000

Expenses:

Advertising expense $2,000

Salaries expense $91,000

Office supplies expense $2,500

Utilities expense $850

Malpractice insurance expense $8,000

Office rent expense $28,000

Continuing education expense $3,150

Depreciation expense: fixtures $5,000

Miscellaneous expense $7,000

Income taxes expense $39,000 $186,500

Net income $253,500

Please assist with homework question for a., b., and c., given:

Lift Ticket

                           Revenue                              Cash

November 30        $28,000                      $9,000

December 31          $200,000                $60,000

January 31                $650,000              $79,000

February 28                 $720,000             $95,000

March 31                   $890,000                $140,000

Question 1: prepare income statements and balance sheets for the resort assuming they are prepared for:

a. The month ended February 28.

1. Indicate what amount will be shown in the statements for Lift Ticket Revenue.

2. Indicate what amount will be shown in the statements for Cash.

b. The entire busy season to date - that is, December 1 through March 31.

1. Indicate what amount will be shown in the statements for Lift Ticket Revenue.

2. Indicate what amount will be shown in the statements for Cash.

Question 1c. In terms of Lift Ticket Revenue and increases in Cash, which has been the resort's best month?