Asked by Sarah-Cate Parker on May 17, 2024
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The assets and liabilities of Rocky's Day Spa at December 31 and its expenses for the year are listed below. The capital of the owner was $68,000 at January 1. The owner invested an additional $10,000 during the year. Net income for the year is $45,625.? Accounts payable $4,375 Spa operating expense $23,760 Accounts receivable 8,490 Office expense 2,470 Cash 13,980 Spa supplies 9,230 Fees earned ??? Wages expense 26,580 Spa furniture and equipment 56,000 Drawing 38,170 Computers 2,130\begin{array} { | l | r | l | r | } \hline \text { Accounts payable } & \$ 4,375 & \text { Spa operating expense } & \$ 23,760 \\\hline \text { Accounts receivable } & 8,490 & \text { Office expense } & 2,470 \\\hline \text { Cash } & 13,980 & \text { Spa supplies } & 9,230 \\\hline \text { Fees earned } & ? ? ? & \text { Wages expense } & 26,580 \\\hline \text { Spa furniture and equipment } & 56,000 & \text { Drawing } & 38,170 \\\hline \text { Computers } & 2,130 & & \\\hline\end{array} Accounts payable Accounts receivable Cash Fees earned Spa furniture and equipment Computers $4,3758,49013,980???56,0002,130 Spa operating expense Office expense Spa supplies Wages expense Drawing $23,7602,4709,23026,58038,170 Prepare an income statement for the current year ended December 31.
Owner's Equity
The residual interest in the assets of an entity after deducting liabilities, representing the ownership stake of the business owners.
Income Statement
A financial statement that shows a company's revenues and expenses over a specified period, leading to its net profit or loss.
Net Income
The amount of money left after all expenses, taxes, and costs have been subtracted from total revenue.
- Analyze a firm's financial success by scrutinizing its income, expenditures, and net profit.
- Forge basic financial records, including income statements, balance sheets, and statements regarding the owner's equity.
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Learning Objectives
- Analyze a firm's financial success by scrutinizing its income, expenditures, and net profit.
- Forge basic financial records, including income statements, balance sheets, and statements regarding the owner's equity.
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