3 Dive In Company was started several years ago by two diving instructors. The company's comparative balance sheets and inco statement, as well as additional information, are presented below. 50 points Balance Sheet at December 31 Cash eBook Accounts Receivable Prepaid Rent Print References Total Assets Salaries and Wages Payable Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Service Revenue Salaries and Wages Expense Rent and Office Expenses Net Income Additional Data: Current Year Previous Year $ 5,450 1,000 100 $ 4,600 2,000 200 $ 6,800 $ 850 2,200 3,750 $ 6,800 $ 44,950 40,000 4,150 $ 800 a. Rent is paid in advance each month, and Office Expenses are paid in cash as incurred. b. An owner contributed capital by paying $700 cash in exchange for the company's stock. $ 6,550 $2,100 1,500 2,958 $ 6,550
3 Dive In Company was started several years ago by two diving instructors. The company's comparative balance sheets and inco statement, as well as additional information, are presented below. 50 points Balance Sheet at December 31 Cash eBook Accounts Receivable Prepaid Rent Print References Total Assets Salaries and Wages Payable Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Service Revenue Salaries and Wages Expense Rent and Office Expenses Net Income Additional Data: Current Year Previous Year $ 5,450 1,000 100 $ 4,600 2,000 200 $ 6,800 $ 850 2,200 3,750 $ 6,800 $ 44,950 40,000 4,150 $ 800 a. Rent is paid in advance each month, and Office Expenses are paid in cash as incurred. b. An owner contributed capital by paying $700 cash in exchange for the company's stock. $ 6,550 $2,100 1,500 2,958 $ 6,550
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:3
Dive In Company was started several years ago by two diving instructors. The company's comparative balance sheets and inco
statement, as well as additional information, are presented below.
50
points
Balance Sheet at December 31
Cash
eBook
Accounts Receivable
Prepaid Rent
Print
References
Total Assets
Salaries and Wages Payable
Common Stock
Retained Earnings
Total Liabilities and Stockholders' Equity
Income Statement
Service Revenue
Salaries and Wages Expense
Rent and Office Expenses
Net Income
Additional Data:
Current Year
Previous Year
$ 5,450
1,000
100
$ 4,600
2,000
200
$ 6,800
$ 850
2,200
3,750
$ 6,800
$ 44,950
40,000
4,150
$ 800
a. Rent is paid in advance each month, and Office Expenses are paid in cash as incurred.
b. An owner contributed capital by paying $700 cash in exchange for the company's stock.
$ 6,550
$2,100
1,500
2,958
$ 6,550
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