Unit 4 Discussion More questions from Anne Marie. Please share key details, concepts and examples to help her understand the material. 1. What are accounts receivable? Is it something good? Provi
| Anne's Beauty Salon, Inc | ||
| Income Statement | ||
| For the Year 20XX | ||
| Sales (Revenue) | $125,000.00 |
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| Cost of Goods Sold | 25,000.00 |
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| Gross Profit | 100,000.00 |
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| Payroll Expense | 67,500.00 |
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| Sales, General, Administrative Expense | 5,000.00 |
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| Rent Expense | 1,400.00 |
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| Utilities Expense | 1,670.00 |
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| Insurance Expense | 500.00 |
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| Depreciation Expense | 2,500.00 |
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| Total Operating Expense | 78,570.00 |
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| Total Operating Income | 21,430.00 |
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| Income Taxes | 6,430.00 |
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| Net Income | $15,000.00 |
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| Anne's Beauty Salon, Inc | ||
| Statement of Retained Earnings | ||
| For the Month Ending December 31, 20XX | ||
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| Retained Earnings, December 1 | $5,000.00 |
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| Add: Net Income | 15,000.00 |
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| Subtract: Dividends | (2,402.50) |
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| Retained Earnings, December 31 | $17,597.50 |
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| Anne's Beauty Salon, Inc | ||||
| Balance Sheet | ||||
| At December 31, 20XX | ||||
| Assets | Liabilities |
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| Current Assets | Current Liabilities |
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| Cash | $949.50 | Accounts Payable | $5,000.00 | |
| Accounts Receivable | 11,948.00 | Unearned Revenue | 200.00 | |
| Supplies | 20,500.00 | Total Current Liabilities | 5,200.00 | |
| Prepaid Rent | 8,400.00 |
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| Prepaid Insurance | 6,000.00 |
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| Total Current Assets | 47,797.50 | Note Payable | 15,000.00 | |
| Equipment | $25,000.00 | Total Liabilities | 20,200.00 | |
| Less: Accumulated |
| Stockholders' Equity |
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| Depreciation | (5,000.00) | 20,000.00 | Common Stock | 30,000.00 |
| Total Long-Term Assets | Retained Earnings | 17,597.50 | ||
| Total Assets | $67,797.50 | Total Liabilities and | $67,797.50 | |
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| Stockholders' Equity |
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