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Thomas Corporation: Total Assets, Cash, and Net Income

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Thomas Corporation began business by issuing $2,000 of common stock on January 1, 2010. The business performed $8,000 of service on account in 2010 and collected $6,000 of this amount by year end. It paid operating expenses of $4,500 and paid a $500 dividend to stockholders.

a) What is the amount of total assets at the end of 2010?

b) What is the amount of cash on hand at the end of 2010?

c) What is the net income for 2010?

d) Prepare a balance sheet in good form for 2010

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Solution Summary

This response calculates total assets, cash on hand, and net income.

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First of all prepare the Profit and Loss Account for year 2010:

Service Revenue $8000
Operating Expenses $4500
Operating Profits $3500 =8000-4500
Other expenses $0
Taxable Profit $3500
Tax $0 (no tax rate ...

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