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3 years ago

What does the income statement determines ?

Business

1 answer:

nordsb [41]3 years ago

7 0

Answer:

The purpose of the income statement is to show the reader how much profit or loss an organization generated during a reporting period. This information is more valuable when income statements from several consecutive periods are grouped together, so that trends in the different revenue and expense line items can be viewed.

Explanation:

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Harris Company uses the allowance method of handling its credit losses. It estimates credit losses at one percent of credit sale

likoan [24]

Answer:

Dec.31 Bad Debts Expense 27000

December 31 Balance Sheet Accounts Receivable 392400

Explanation:

Harris Company

Credit Sales for the current year $2700,000

Credit Losses = 1% of $ 2700,000= $ 27000

Add Allowance for Doubtful Accounts $ 30600 Cr

Required Adjustments $ 57,600 Cr

General Journal

Date Description Debit Credit

Dec.31 Bad Debts Expense 27000

Allowance for Doubtful Accounts 27000

December 31 Balance Sheet.

Accounts Receivable $450,000

Less: Allowance for Doubtful Accounts $57,600 ( 27000+ 30,600)

Accounts Receivable 392400

6 0

3 years ago

Below are the account balances for Cowboy Law Firm at the end of December. Accounts Balances Cash $ 4,000 Salaries expense 1,500

matrenka [14]

Explanation:

The preparation of the end December Income statement for Cowboy Law Firm is presented below:

Cowboy Law Firm

Income statement

Revenue

Service Revenue $7,900

Total revenues $7,900 (A)

Less: Expenses

Salaries expense $1,500

Utilities expense $1,000

Total expenses $2,500 (B)

Net income $5,400 (A- B)

4 0

3 years ago

Bill owns Jurisprudence Employers, Inc., a legal staffing company and employs George. One day Bill instructed George to falsify

Alenkinab [10]

Answer:

Bill is also equally and somewhere more liable as he is the employer.

Explanation:

Although in records it might seem that George did the falsify act, but for that he required the permission of his employer.

When the fact is clearly stated that George did this on direction of his employer Bill, and that Bill demanded this intentionally in order to present extra profits, he is more liable for this false act.

As George is the employee, he is bound to follow the directions of his employer. Thus Bill is crucially liable for this act, as he is an important reason for this act.

7 0

3 years ago

A bond with a face value of $100,000 was issued for $93,500 on January 1 of this year. The stated rate of interest was 8 percent

Inessa05 [86]

Answer:

So interest payment will be $8000

Explanation:

We have given face value of the bond = $100000

And bond is issued for $93500

Standard rate of interest = 8 %

And market rate of interest = 10 %

We have to find the interest paid

Interest payment will be given by

Interest payment = face value of bond × standard rate of interest

= $100000×0.08 = $8000

So interest payment will be $8000

5 0

3 years ago

When making decisions, evaluating your possible resources will help _____. a. Impose limits to possible choices b. Add weight to

Slav-nsk [51]

A impose limits to possible choices

I'm pretty sure.

4 0

3 years ago

Read 2 more answers