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?