Question

In: Accounting

Determine the total assets of kirby company at December 31,2017,Determine the net income that kirby company reported for December 2017

Presented below is selected information related to Kirby Company at December 31.Kirby reports financial information monthly

Particulars Amount$
Accounts payable 3,000
Cash 6,500
Advertising Expense 6,000
Service Revenue 53,500
Equipment 29,000
Salaries & Wages Expense 16,500
Notes payable 25,000
Rent Expense 10,500
Accounts Receivable 13,500
Owner's Drawings 7,500

(a) Determine the total assets of Kirby Company at December 31,2017

(b) Determine the net income that Kirby Company reported for December 2017

(c)Determine the Owner's equity of Kirby Company at December 31,2017

Solutions

Expert Solution

Calculation of Total assets of K Company at December 31,2017

Total assets = Cash + Equipment + Accounts Receivable

                   = $6,500 + $29,000 + $13,500

                   = $49,000

Calculation of Net income of K Company for December 

Net income =Service Revenue - Advertising Expense - Salaries & Wages Expense - Rent Expense

=$53,500 -$6,000 -$16,500 -$10,500

=$20,500

Calculation of Owner's Equity of K Company at December 31,2017

Owner's Equity = Total assets - Accounts Payable - Notes Payable

                         = $49,000 -$3,000 -$25,000

                         = $21,000


(a) Total Assets of K Company  = $49,000

(b) Net Income of K Company for December 2017 = $20,500

(c) Owner's Equity of Kirby Company at December 31,2017 = $21,000

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