Purchase Solution

business entries: derive net income, journal entries

Not what you're looking for?

Ask Custom Question

Smith Brothers:

1. Compute total expenses:
2. Compute net income:
3. Compute total revenue for 2006:
4. Comparative financial statements

Anna Regina

Lee Company

See attached file for full problem description.

Attachments
Purchase this Solution
Solution Summary

The solutions for the three problems are presented together with explanations. Smith is in narrative format, but Anna Regina and Lee Company are prepared in Excel with journal entries and T-accounts.

Solution Preview

Smith Brothers:

1. Compute total expenses: $4,500 + $44,800 + $1,500 + $3,000 = $53,800. Dividends are not an expense of doing business, but rather a distribution of equity (retained earnings).

2. Compute net income: ...

Purchase this Solution
Free BrainMass Quizzes
Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

View More Free Quizzes
Related BrainMass Solutions

  • Question about Northland Physical Therapy

    Is the business financed primarily by debt or equity? The net income for 2006 is $6. The business is financed primarily by debt as can be seen from the balance sheet. Total liabilities are $43 to finance the assets of $69.

  • E-Z Manufacturing partners' share of net income,

    455597 E-Z Manufacturing partners' share of net income, partner's equity at year end; stockholders' equity section and journal entries for S & X Co. Problem C1, C2 must be done in Excel and with calculations shown.

  • Accounting: Identifying Journal Entry Errors

    (c) What was the correct net income for May, assuming the bookkeeper reported net income of $4,500 after posting all 50 entries?

  • Equity Method - Journal entries for Holding Company

    328090 Equity Method - Journal entries for Holding Company Sims Company owns 80% of the common stock of Allied Company. In 2006, Allied reported $200,00 net income and paid cash dividends of $80,000.

  • Sariah's Clip Shop, O'Malley Repair Shop

    The account balance will be the income or loss of the business for the period. For Sariah's Clip Shop, the credit side is greater than the debit side, therefore, the difference is the income for the period.

  • Important information about Northland Physical Therapy

    The closing entries are passed to close the revenue, expense and dividend accounts. 6. The post closing trial balance is prepared. Answer to question no 9 9. The net income for 2006 was $6,000.

  • Grant Corporation: Corrections to net income with journal entries

    286717 Grant Corporation: Corrections to net income with journal entries The controller for Grant Corporation is concerned about certain business transactions that the company experienced during 2008.

  • Journal Entries for Fair Value and Equity Methods

    On December 31, Seles reported a net income of $85,000 for the year. Instructions Prepare all necessary journal entries in 2003 for both situations.

  • Hatcher Co: JEs for Fair Value and Equity Methods

    Dec 31: Nadal reported a net income of $91,200. Your tutorial gives instructional notes and the journal entries needed. Click in cells to see computations. Your tutorial gives instructional notes and the journal entries needed.

  • Director of Accounting and Executive Director

    They are assets, liabilities, income, and expenses. Assets are things that the business owns. Liabilities are debts the business owes. Income is the revenue generated from the sale of goods or services.

View More Related Solutions