I need a full indepth explanation on how to plug in the accounting formula so i can pratice it! below is the questionSmokey Enterprises began operations by receiving $100,000 cash from its sole owner Jessica Jones. During its first year of operations, the business earned $20,000 in cash from operations and paid $15,000 in cash expenses. What is Smokey Enterprises’ net income for its first year of operations? Business Events for Year 1:1. Rustic Campsites (RCS) was formed at the beginning of Year 1 when it acquired$120,000 cash from issuing common stock to its owners.2. RCS borrowed $400,000 cash from a creditor.3. RCS paid $500,000 cash to purchase land.4. RCS obtained $85,000 cash from leasing camp sites to customers.5. RCS paid $50,000 cash for expenses.6.RCS paid dividends of $4,000 cash to its owners.7. The land that RCS paid $500,000 to purchase had an appraised market value of$525,000 at the end of Year 1.Beg. Bal.1.2.3.4.5.6.7.End Bal.CashAssetsLandAccounting EquationLiab.NotePayable+EquityCom. Stk.Ret. EarnOtherAccountTitles $5,000$15,000$105,000$20,000

The revenues and expenses are reported in the income statement of the company. The net income is…

Smokey Enterprises began operations by receiving $100,000 cash from its sole owner Jessica Jones. During its first year of operations, the business earned $20,000 in cash from operations and paid $15,000 in cash expenses.

Smokey Enterprises began operations by receiving $100,000 cash from its sole owner Jessica Jones. During its first year of operations, the business earned $20,000 in cash from operations and paid $15,000 in cash expenses.

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

Chapter2: Financial Statements And The Annual Report

Section: Chapter Questions

Problem 2.8P: Statement of Cash Flows Colorado Corporation was organized at the beginning of the year, with the...

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