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
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter13: Financial Statement Analysis
Section: Chapter Questions
Problem 13.1DC
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