Why Choose Us?
0% AI Guarantee
Human-written only.
24/7 Support
Anytime, anywhere.
Plagiarism Free
100% Original.
Expert Tutors
Masters & PhDs.
100% Confidential
Your privacy matters.
On-Time Delivery
Never miss a deadline.
Strand Corp has the following information for their first month of their professional services business: Revenues $150,000, wage expense $70,000, rent expense $20,000, advertising expense $10,000, cash $15,000, accounts receivable $15,000, equipment $100,000, accounts payable $5,000, notes payable $45,000, common stock $30,000
Strand Corp has the following information for their first month of their professional services business:
Revenues $150,000, wage expense $70,000, rent expense $20,000, advertising expense $10,000, cash $15,000, accounts receivable $15,000, equipment $100,000, accounts payable $5,000, notes payable $45,000, common stock $30,000.
1) How much is Strand's Net Income?
2) What is the balance of Strand's total assets?
3) What is the balance of Strand's total liabilities?
Expert Solution
1. Computation of net income:
Net income = revenue - (wage expense + rent expense + advertising expense)
= $150,000 - ($70,000 + $20,000 + $10,000)
= $50,000
2. Computation of total assets:
Total assets = cash + accounts receivables + equipment
= $15,000 + $15,000 + $100,000
= $130,000
3. Computation of total liabilities:
Total liabilities = accounts payable + notes payable
= $5,000 + $45,000
= $50,000
Total assets = total liabilities + stockholders' equity
= $50,000 + ($30,000 + $50,000)
= $130,000
Archived Solution
You have full access to this solution. To save a copy with all formatting and attachments, use the button below.
For ready-to-submit work, please order a fresh solution below.
