FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
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Nicole Mackisey is thinking of forming her own spa business, Nicole's Getaway Spa (NGS). Nicole expects that she and
two family members will each contribute $10,000 to the business and receive 1,000 shares each. Nicole forecasts the
following amounts for the first year of operations, ending December 31, 2021: Cash on hand and in the bank, $3,750;
amounts due from customers from spa treatments, $1,940; building and equipment, $77,000; amounts owed to beauty
supply outlets for spa equipment, $4,820; notes payable to a local bank for $40,470. Cash dividends of $6,500 will be
paid to the stockholders during the year. Nicole also forecasts that first-year sales revenues will be $77,100; wages will be
$32,000; the cost of supplies used up will be $15,000; office expenses will be $13,000; and income taxes will be $3,200.
3. Prepare a (forecasted) balance sheet for Nicole's Getaway Spa at December 31, 2021.
NICOLE'S GETAWAY SPA
Balance Sheet (forecasted)
At December 31, 2021
Assets
Cash
Building and Equipment
Accounts Receivable
Total Assets
$
S
3,750
77,000
11,000
91,750
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Required information
[The following information applies to the questions displayed below.]
Nicole Mackisey is thinking of forming her own spa business, Nicole's Getaway Spa (NGS). Nicole expects that she and
two family members will each contribute $10,000 to the business and receive 1,000 shares each. Nicole forecasts the
following amounts for the first year of operations, ending December 31, 2021: Cash on hand and in the bank, $3,750;
amounts due from customers from spa treatments, $1,940; building and equipment, $77,000; amounts owed to beauty
supply outlets for spa equipment, $4,820; notes payable to a local bank for $40,470. Cash dividends of $6,500 will be
paid to the stockholders during the year. Nicole also forecasts that first-year sales revenues will be $77,100; wages will be
$32,000; the cost of supplies used up will be $15,000; office expenses will be $13,000; and income taxes will be $3,200.
3. Prepare a (forecasted) balance sheet for Nicole's Getaway Spa at December 31, 2021.
NICOLE'S GETAWAY SPA
Balance Sheet (forecasted)
At December 31, 2021
Assets
Cash
Building and Equipment
Accounts Receivable
Total Assets
$
S
3,750
77,000
11,000
91,750
< Prev
S
9
of 12
www
www
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