Flavor Ice Cream received a payment of $7,800 from a credit customer within the discount period. Identify the journal the transa
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Answer:
1. What is the amount of profit or loss during December?
- $9,300
2. What were the total expenses for December?
- $12,950
3. How much was paid for rent?
- $1,220
Explanation:
we are missing some numbers, so I looked for a similar question. I found one that was almost identical, but the amount of initial paid in capital varied by a little bit. I still used it with the only difference that I used the given common stock, not the common stock that appears in the picture.
Common stock $29,750
retained earnings for November = $5,000
total assets = $56,150
total stockholders' equity = $38,300
retained earnings = $38,300 - $29,750 = $8,550
- $5,000 from November
- $3,550 from December
December's profit = $3,550 (retained earnings) + $5,750 (dividends) = $9,300
income statement = $27,250 - total expenses = $9,300 + $5,000 = $14,300
total expenses = $27,250 - $14,300 = $12,950
utilities expense = $12,950 - $6,450 - $4,625 - $1,220 = $655
