Reference no: EM13933482
Income statement preparation On December 31, 2015, Cathy Chen, a self-employed certified public accountant (CPA), completed her first full year in business. During the year, she billed $360,000 for her accounting services. She had two employees, a bookkeeper and a clerical assistant. In addition to her monthly salary of $8,000, Ms. Chen paid annual salaries of $48,000 and $36,000 to the bookkeeper and the clerical assistant, respectively. Employment taxes and benefit costs for Ms. Chen and her employees totaled $34,600 for the year. Expenses for office supplies, including postage, totaled $10,400 for the year. In addition, Ms. Chen spent $17,000 during the year on tax-deductible travel and entertainment associated with client visits and new business development. Lease payments for the office space rented (a tax deductible expense) were $2,700 per month. Depreciation expense on the office furniture and fixtures was $15,600 for the year. During the year, Ms. Chen paid interest of $15,000 on the $120,000 borrowed to start the business. She paid an average tax rate of 30% during 2015.
a. Prepare an income statement for Cathy Chen, CPA, for the year ended December 31, 2015.
b. Evaluate her 2015 financial performance.
|
Calculate the elasticity of demand for university courses
: As a policy analyst you have been asked to calculate the elasticity of demand for university courses. What is the price elasticity of demand for courses at the universities that increases their fees by 30%? Is demand for these courses elastic or i..
|
|
Application should calculate and display the order amounts
: Make sure the number of units for each package is numeric, and is not negative.
|
|
Calculate change in internal energy
: Calculate change in internal energy. In the answer delta n is 6-7.5, and I don't quiet understand where these two numbers came from.
|
|
Compare the assets of both companies
: Compare the assets of both companies. What assets do they have in common? What assets are different? Why?
|
|
Self-employed certified public accountant
: Income statement preparation On December 31, 2015, Cathy Chen, a self-employed certified public accountant (CPA), completed her first full year in business. During the year, she billed $360,000 for her accounting services. She had two employees, a bo..
|
|
Do you feel that the language acquisition during adulthood
: Do you feel that the language acquisition during adulthood makes it difficult to learn languages past the presumed 'critical period' during childhood? Is this possible and why?
|
|
Based on real life project undertaken by any company
: The research must be based on real life project undertaken by any company in any industry and the articles or report must highlight some problem on the project .
|
|
Firm is considering project that would change firm values
: ATC has a value of $70,000 in a good economy and $55,000 in a recession. The firm has $60,000 of debt. The probability of a recession is 50 percent. The firm is considering a project that would change the firm values to $73,000 in a good economy and ..
|
|
What do you think are the implications of this history
: Between the late 19th and turn of the 20th century, the US experienced record-breaking immigration (Brennan, 2002). That is, immigrants from many different parts of the world, particularly from Southern Europe, Asia, and the United Kingdom, were c..
|