Question

Do It! Review 1-05 a-c Presented below is selected information related to Cullumber Company at December 31, 2020. Cullumber reports financial information monthly. Accounts Payable $ 4,054 Salaries and Wages Expense $22,298 Cash 8,784 Notes Payable 33,785 Advertising Expense 8,108 Rent Expense 14,190 Service Revenue 72,300 Accounts Receivable 18,244 Equipment 39,191 Owner’s Drawings 10,135

Determine the total assets of Cullumber Company at December 31, 2020. Total assets $ SHOW SOLUTION

Determine the net income that Cullumber Company reported for December 2020. Net income $ SHOW SOLUTION

Determine the owner’s equity of Cullumber Company at December 31, 2020. Owner’s equity $

Answer 1

Income Statement
Revenues:
Service revenue	72,300
Total revenue		72,300
Expenses:
Advertising expense	8,108
Salaries and wages expense	22,298
Rent expense	14,190
Total expenses		-44,596
Net Income		$27,704

Statement of Owners Equity
Owner’s capital beginning		0
Add: Net income	27,704
Less: Owner’s drawings	-10,135
		17,569
Owner’s capital ending		$17,569

Balance Sheet
Assets		Amount
Current Assets:
Cash	8,784
Accounts receivable	18,244
Total Current Assets		27,028
Plant,Assets :
Equipment	39,191
Total plant asset		39,191
Total Assets		$66,219

Total assets

$66,219

Net income

$27,704

Owner’s equity

$17,569