In: Accounting
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
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