ABC Corporation had the following account balances at the beginning of the year: Cash: $10,000 Accounts Receivable: $5,000 Inventory: $20,000 Accounts Payable: $8,000 Long-term Debt: $50,000 Equity: $35,000 During the year, the company generated $50,000 in sales revenue, incurred $30,000 in expenses, and paid off $10,000 of long-term debt. Calculate the ending balance of equity.

ABC Corporation had the following account balances at the beginning of the year: Cash: $10,000 Accounts Receivable: $5,000 Inventory: $20,000 Accounts Payable: $8,000 Long-term Debt: $50,000 Equity: $35,000 During the year, the company generated $50,000 in sales revenue, incurred $30,000 in expenses, and paid off $10,000 of long-term debt. Calculate the ending balance of equity.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...

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Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of goods sold was 240,000, its operating expenses were 50,000, its interest revenue was 2,000, and its interest expense was 12,000. Brandts income tax rate is 30%. Prepare Brandts multiple-step income statement for the current year.
The companys balance sheet showed an accounts receivble balance of $80,000 at the begininng of the year and $47,000 at the end of the year. The company reported $720,000 in credit sales for the year. What was the amount of cash collected on account receivables durig the year
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