Listed below are several transactions that took place during the first two years of operations for the law firm of Pete, Pete and Roy. Year 1 Year 2 Amounts billed to customers for services rendered $ 170,000 $ 220,000 Cash collected from customers 160,000 190,000 Cash disbursements: Salaries paid to employees for services rendered during the year 90,000 100,000 Utilities 30,000 40,000 Purchase of insurance policy 60,000 0 In addition, you learn that the company incurred utility costs of $35,000 in year 1, that there were no liabilities at the end of year 2, no anticipated bad debts on receivables, and that the insurance policy covers a three-year period.
Listed below are several transactions that took place during the first two years of operations for the law firm of Pete, Pete and Roy. Year 1 Year 2 Amounts billed to customers for services rendered $ 170,000 $ 220,000 Cash collected from customers 160,000 190,000 Cash disbursements: Salaries paid to employees for services rendered during the year 90,000 100,000 Utilities 30,000 40,000 Purchase of insurance policy 60,000 0 In addition, you learn that the company incurred utility costs of $35,000 in year 1, that there were no liabilities at the end of year 2, no anticipated bad debts on receivables, and that the insurance policy covers a three-year period.
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter1: Business Transactions (ptrans)
Section: Chapter Questions
Problem 4R: On June 1 of the current year, Wilson Wood opened Woodys Web Services. This sole proprietorship had...
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Listed below are several transactions that took place during the first two years of operations for the law firm of Pete, Pete and Roy.
|
Year 2 |
|
||||
Amounts billed to customers for services rendered |
$ |
170,000 |
$ |
220,000 |
||
Cash collected from customers |
160,000 |
190,000 |
||||
Cash disbursements: |
||||||
Salaries paid to employees for services rendered during the year |
90,000 |
100,000 |
||||
Utilities |
30,000 |
40,000 |
||||
Purchase of insurance policy |
60,000 |
0 |
||||
|
In addition, you learn that the company incurred utility costs of $35,000 in year 1, that there were no liabilities at the end of year 2, no anticipated |
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