The income statement of a proprietorship for the month of February indicates a net income of $17,500. During the same period, the owner withdrew $25,500 in cash from the business for personal use.Would it be correct to say that the business had incurred a net loss of $8,000during the month? Discuss.
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The income statement of a proprietorship for the month of February indicates a net income of $17,500. During the same period, the owner withdrew $25,500 in cash from the business for personal use.
Would it be correct to say that the business had incurred a net loss of $8,000
during the month? Discuss.
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- My business has a Stores and Distribution expense of $1,542,425, 80% was paid in Cash ($1,233,940), the rest was charged to Accured Liablilites ($308,485). How do I journalize this activity for the end of the fiscal year?Nixon Corp. had rental revenue of $41,950. Expenses for the year ended December 31, 20Y5, are as follows: Utilities Expense, $6,000; Salaries Expense, $16,300; Miscellaneous Expense, $3,000; and Rent Expense, $14,450. What is the net income (loss) that should be reported on Nixon Corp.'s income statement for the year ended December 31, 20Y5?Use the following information for Problems 30 and 31. On March 15, Calloway, Inc., paid property taxes of $480,000 for the calendar year. 30. How much of this expense should Calloway’s income statement reflect for the quarter ending March 31? a. –0– b. $40,000 c. $120,000 d. $480,000 31. The journal entry at March 15 to record the payment of property taxes would include which of the following? a. A debit to Property Tax Expense of $480,000 b. A credit to Cash of $120,000 c. A debit to Prepaid Property Taxes of $360,000 d. A credit to Prepaid Property Taxes of $40,000
- The net income of Edwards Corporation amounted to $65,000 for this year. The beginning balance of owner's equity was $20,000 and the ending balance was $80,000. The company received $15,000 additional contributions during the year. What was the amount of the owner's withdrawals during the year?In its first year of operations, Roma Company reports the following. • Earned revenues of $45,000 ($37,000 cash received from customers). • Incurred expenses of $25,500 ($20,250 cash paid toward them). Prepaid $6,750 cash for costs that will not be expensed until next year. Compute Roma's first-year net income under the cash basis and the accrual basis of accounting. Revenues Expenses Net income Cash Basis Accrual BasisUse the following information for Problems 30 and 31.On March 15, Calloway, Inc., paid property taxes of $480,000 for the calendar year.The journal entry at March 15 to record the payment of property taxes would include which of the following?a. A debit to Property Tax Expense of $480,000.b. A credit to Cash of $120,000.c. A debit to Prepaid Property Taxes of $360,000.d. A credit to Prepaid Property Taxes of $40,000.