Juliet opened an Office Cleaning Service company on January 1, 2021. During the year she had the following transactions. 1) She started the business with investing $25,000 of her own money (business was organized as corporation) 2) She purchased $18,000 equipment in cash. 3) She purchased a truck for $30,000 for business use - paid $5,000 in cash and signed a 3-year note for the rest. 4) She borrowed $20,000 from bank by signing a 5-year note. 5) During the year, purchased $5,500 of supplies in cash. 6) During the year, provided $120000 services to customers of which $100,000 was collected, the rest was not yet collected as of Dec. 31st. 7) During the year, she incurred $80,000 of salaries, rent, utilities, and insurance expenses of which $3000 was still not paid as of Dec. 31st. 8) During the year, she paid $4,000 to bank of which $1200 was for interest and the rest was for payment of the principal of the loan. 9) During the year, she took $6,000 as dividend (dividends paid to shareholders). 10) She sold $800 of unnecessary equipment in cash at cost. 11) During the year, she collected $180 interest from bank on holding bank account 12) In last week of December, she collected $2,000 from a customer in advance for services to be rendered next year. 13) She paid $3,000 to IRS for income tax. 14) Only $800 of the supplies was left on Dec. 31st. 15) Depreciation expense for the year was $2,000. Compute total liabilities as of Dec. 31st. Compute total revenues for the year.
Juliet opened an Office Cleaning Service company on January 1, 2021. During the year she had the following transactions. 1) She started the business with investing $25,000 of her own money (business was organized as corporation) 2) She purchased $18,000 equipment in cash. 3) She purchased a truck for $30,000 for business use - paid $5,000 in cash and signed a 3-year note for the rest. 4) She borrowed $20,000 from bank by signing a 5-year note. 5) During the year, purchased $5,500 of supplies in cash. 6) During the year, provided $120000 services to customers of which $100,000 was collected, the rest was not yet collected as of Dec. 31st. 7) During the year, she incurred $80,000 of salaries, rent, utilities, and insurance expenses of which $3000 was still not paid as of Dec. 31st. 8) During the year, she paid $4,000 to bank of which $1200 was for interest and the rest was for payment of the principal of the loan. 9) During the year, she took $6,000 as dividend (dividends paid to shareholders). 10) She sold $800 of unnecessary equipment in cash at cost. 11) During the year, she collected $180 interest from bank on holding bank account 12) In last week of December, she collected $2,000 from a customer in advance for services to be rendered next year. 13) She paid $3,000 to IRS for income tax. 14) Only $800 of the supplies was left on Dec. 31st. 15) Depreciation expense for the year was $2,000. Compute total liabilities as of Dec. 31st. Compute total revenues for the year.
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 41P
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Juliet opened an Office Cleaning Service company on January 1, 2021. During the year she had the following transactions.
| 1) | She started the business with investing $25,000 of her own money (business was organized as corporation) |
| 2) | She purchased $18,000 equipment in cash. |
| 3) | She purchased a truck for $30,000 for business use - paid $5,000 in cash and signed a 3-year note for the rest. |
| 4) | She borrowed $20,000 from bank by signing a 5-year note. |
| 5) | During the year, purchased $5,500 of supplies in cash. |
| 6) | During the year, provided $120000 services to customers of which $100,000 was collected, the rest was not yet collected as of Dec. 31st. |
| 7) | During the year, she incurred $80,000 of salaries, rent, utilities, and insurance expenses of which $3000 was still not paid as of Dec. 31st. |
| 8) | During the year, she paid $4,000 to bank of which $1200 was for interest and the rest was for payment of the principal of the loan. |
| 9) | During the year, she took $6,000 as dividend (dividends paid to shareholders). |
| 10) | She sold $800 of unnecessary equipment in cash at cost. |
| 11) | During the year, she collected $180 interest from bank on holding bank account |
| 12) | In last week of December, she collected $2,000 from a customer in advance for services to be rendered next year. |
| 13) | She paid $3,000 to IRS for income tax. |
| 14) | Only $800 of the supplies was left on Dec. 31st. |
| 15) |
Compute total liabilities as of Dec. 31st.
Compute total revenues for the year.
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