1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Mice21 [21]
3 years ago
9

Practice Makes Perfect Inc. was started on July 1 of the current year. Practice Makes Perfect provides piano lessons for student

s of all abilities. You are the founder, president, of manager, etc. You have not yet hired an accountant but your bank is asking for an income statement and balance sheet for the first month of operation. Then prepare a simple income statement and a balance sheet to present to the bank. Transactions:
a. You started your company with $100,000 that you raised by selling stock in Practice Makes Perfect Inc. to your family and friends.
b. Knowing that you would need additional funds, you presented your business plan to the bank and were able to get a $50,000 loan at 10 percent.
c. You purchased three pianos for $16,000 each, paying cash. You believe these pianos will last five years before you replace them. At the end of the five years, you think you can sell each piano for $1,000.
d. You spent $2,000 on supplies, which you charged on account.
e. The newspaper bills you $500 for the advertisement you ran. You plan on paying the bill next month.
f. Rent for the space you have leased is $1,000 a month, which you paid.
g. The firrst month, you bill students $2,000 for lessons.
h. You pay your two part-time piano teachers $500 each at the end of the month.
i. One of your students paid the $200 invoice you sent earlier in the month.
j. You write the check for the interest owed for the month.
k. You adjust the supplies account for $300 of sheet music that you gave to students.
l. You record one month of depreciation on the pianos.
2. Make a list of the assets and liabilities you would want to keep track of in a company you owned. What types of revenues would you have? What types of expenses would you want to track?
3. Look on the Internet for the ?nancial statements of a publicly held company. (If you own stock in a company, look for the financial statements in the last annual report you received.) OR ask your employer if you can look at a set of the company
Business
1 answer:
Natalka [10]3 years ago
6 0

Answer:

I used an excel spreadsheet to record this transactions on an accounting equation.  

Practice Makes Perfect, Inc.

Income Statement

For the month ended July 31, 202x

Revenues                                               $2,000

Expenses:

  • Advertising expense $500
  • Rent expense $1,000
  • Wages expense $1,000
  • Supplies expense $300
  • Depreciation expense $750
  • Interest expense $417                 <u> ($3,967)</u>

Net income                                             ($1,967)

Practice Makes Perfect, Inc.

Balance Sheet

For the month ended July 31, 202x

Assets:

  • Cash $99,783
  • Accounts receivables $1,800
  • Supplies $1,700
  • Pianos $47,250

Total assets                                         $150,533

Liabilities:

  • Accounts payable $2,500
  • Notes payable $50,000

Total liabilities                                      $52,500

Stockholders' equity

  • Common stock $100,000
  • Retained earnings ($1,967)

Total stockholders' equity                  $98,033

Total liabilities + equity                      $150,533        

Download pdf
You might be interested in
Emily Lim owns and runs an ice cream parlor in San Diego. Last year, she had sales of $490,000 and an average tax rate of 32%. S
notka56 [123]

Answer:

1). EBIT = Sales - Expenses - Depreciation

= $490,000 -($49,000 - $24,500 - $73,500 - $98,000 - $73,500 - $49,000) - $14,700

= $490,000 - $367,500 - $14,700

= $107,800

2. Net Income = [EBIT - Interest] x [1 - t]

= ($107,800 - $24,500) *(1 - 32%)

= $83,300 * 0.68

= $56,644

5 0
3 years ago
On January 1, 2021, Laramie Inc. acquired land for $6.2 million. Laramie paid $1.2 in cash and signed a 6% note requiring the co
stepladder [879]

Answer:

The amount Laramie should record the purchase of land is <u>$6.2 million</u>.

Explanation:

The costs of a fixed asset refer to the purchase price and other relevant costs which are incurred in order to the location and working condition required to operate the fixed asset in way that it is intended.

The other relevant costs that are added to the purchase price to arrive at the cost of the fixed assets include professional fees, non-refundable taxes or levies, and among others.

If any trade discount or rebate is given, this will be deducted from the purchase price to arrive at the cost.

Any interest required to be paid on the delayed payment in order to reflects the time value of money are not part of the cost of the asset but expensed in the year they are incurred.

From the question, the land acquired is a fixed asset. Based on the explanation above, the total cost of the asset is $6.2 million. The interest from the 6% interest rate on the remaining $5 million will be part of the cost of the land but it will be expensed in the year they are incurred.

Therefore, the amount Laramie should record the purchase of land is <u>$6.2 million</u>.

6 0
3 years ago
Beatrice invests $1,410 in an account that pays 3 percent simple interest. How much more could she have earned over a 4-year per
mixas84 [53]

Answer:

$7.77

Explanation:

The answer would be the difference between compound and simple interest

Simple interest = principal x time x interest

$1,410 x 0.03 x 4 = $169.20

Compound interest = future value - present value

future value = Principal ( 1 + interest)^n

$1,410 ( 1.03)^4 = $1586.96

$1586.96 -$1,410 = $176.97

Difference = $176.97 - $169.20 = $7.77

4 0
2 years ago
The costs and risks associated with doing business in a foreign country are typically?
shutvik [7]

The costs and risks associated with doing business in a foreign country are typically lower in economically advanced and politically stable democratic nations.

A business is an activity that makes a living or makes money by manufacturing or buying and selling products.

Business is defined as an organization or business entity engaged in commercial, industrial, or professional activities. A business can be a for-profit or non-profit organization. The types range from corporations with limited liability to sole proprietorships, corporations and partnerships.

The definition of business is the profession or trade, the buying and selling of goods or services for profit. A business example is agriculture. An example of a transaction is the sale of a home.

Learn more about business here:brainly.com/question/24553900

#SPJ4

6 0
1 year ago
A kind of annuity that consists of cash flows of equal amounts occurring at regular intervals and that continues indefinitely is
lozanna [386]

Payment is a type of annuity that comprises of equal financial flows that happen at regular periods and last forever.

Describe an annuity.

The goal of nationwide annuities is to increase your retirement income. They are long-term agreements with an insurance provider where you put money. You receive income in the form of recurring payments as compensation for your investment.

many annuity types

There are several different annuity product categories to pick from. Your financial professional can design a strategy to fit your unique objectives, whether you're searching for income possibilities, tools for legacy planning, or spousal protection.

to know more about annuity

brainly.com/question/25792915

#SPJ4

4 0
1 year ago
Other questions:
  • The vice president wrote a letter to the employees announcing the opening of a new production facility. this is an example of wh
    7·1 answer
  • Marshall Enterprises charged the following amounts of overhead to jobs during the year: $20,000 to jobs still in process, $60,00
    11·1 answer
  • In a Process-oriented layout work centers are arranged to minimize the costs of material handling. The basic cost elements for o
    5·1 answer
  • laston Company manufactures a single product using a JIT inventory system. The production budget indicates that the number of un
    8·1 answer
  • The sources of quantitative standards include
    10·1 answer
  • Johnstone’s Realty is a new discount, menu-based brokerage firm. Its approach usually results in a lower listing commission rate
    12·1 answer
  • Association Rule Analysis is the statistical technique typically used to conduct market basket analysis.
    5·1 answer
  • The First Bank of the United States had characteristics that differ from those of the modern central bank of the United States.
    10·1 answer
  • A good percentage to start with for saving is ________________ percent of your teaching income.
    9·1 answer
  • Use the data in P 13-5 for Prince Company. Assume that the stock price per share is $ 28 and that dividends in the amount of $ 3
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!