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skelet666 [1.2K]
4 years ago
5

Robinson Co. had the following transactions in 2016, its first year of operations.

Business
1 answer:
Aloiza [94]4 years ago
6 0

Answer:

Income Statement (cash basis)

Sales revenue $275,000

Utilities ($32,000)

Materials and supplies ($75,000)

Equipment ($50,000)

Wages ($65,000)

Insurance ($36,000)

Net income = $17,000

Income Statement (accrual basis)

Sales revenue $310,000

Utilities ($32,000)

Materials and supplies ($50,000)

Depreciation expense: equipment ($10,000)

Wages ($77,000)

Insurance ($18,000)

Net income = $123,000

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<h3>What is compound?</h3>

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The interest or the benefit earned in a compound is greater as compared to a normal interest. In compounding the benefit is that the interest earned in the past years also earn interest and so there is a great benefit when the savings are matured for a good time.

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<h3>What do you mean when you say "assets" and "liabilities"?</h3>

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