Several amounts from Kamogelo Company at December 31, 2020, are listed below. Service revenue R245,000 Salaries expense R109,000 Dividends declared and paid 15,000 Rent expense 36,000 Buildings 110,000 Land 100,000 Accounts payable 40,000 Accounts receivable 40,000 Capital stock 60,000 Retained earnings, Jan. 1, 2020 40,000 Utilities expense 19,000 Notes payable 30,000 Income tax payable 4,000 Income tax expense 11,000 Required: Answer the following questions: 1. Calculate net income for 2020. 2. How much is Kamogelo Company’s retained earnings at the end of 2020? 3. What primary asset account is missing?
Several amounts from Kamogelo Company at December 31, 2020, are listed below. Service revenue R245,000 Salaries expense R109,000 Dividends declared and paid 15,000 Rent expense 36,000 Buildings 110,000 Land 100,000 Accounts payable 40,000 Accounts receivable 40,000 Capital stock 60,000 Retained earnings, Jan. 1, 2020 40,000 Utilities expense 19,000 Notes payable 30,000 Income tax payable 4,000 Income tax expense 11,000 Required: Answer the following questions: 1. Calculate net income for 2020. 2. How much is Kamogelo Company’s retained earnings at the end of 2020? 3. What primary asset account is missing?
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter2: Basic Accounting Systems: Cash Basis
Section: Chapter Questions
Problem 11CDQ: Using the January 1 and December 31, 20Y8, data given in Question 10, answer the following question:...
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Question
Several amounts from Kamogelo Company at December 31, 2020, are listed below.
| Service revenue | R245,000 | Salaries expense | R109,000 |
| Dividends declared and paid | 15,000 | Rent expense | 36,000 |
| Buildings | 110,000 | Land | 100,000 |
| Accounts payable | 40,000 | 40,000 | |
| Capital stock | 60,000 | 2020 |
40,000 |
| Utilities expense | 19,000 | Notes payable | 30,000 |
| Income tax payable | 4,000 | Income tax expense | 11,000 |
Required:
Answer the following questions:
1. Calculate net income for 2020.
2. How much is Kamogelo Company’s retained earnings at the end of 2020?
3. What primary asset account is missing?
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