Essays24.com - Term Papers and Free Essays
Search

Weber Pest Removal - Income Statement

Essay by   •  April 22, 2018  •  Case Study  •  963 Words (4 Pages)  •  628 Views

Essay Preview: Weber Pest Removal - Income Statement

Report this essay
Page 1 of 4

Weber Pest Removal

Income Statement

For the 6 Months Ended June 30, 2011

Revenue        

Sales Revenue                        $150,000 

        Total Revenue                        $150,000        

Expenses

Cost of Goods Sold                   $52,800

Wage Expense                           $40,000

Rent Expense                           $60,000

Administrative Expense                   $10,000        

Interest Expense                             $6,000

        Total Expenses                        $168,800        

 Net Income                                 $(18,800)


Weber Pest Removal

Balance Sheet

June 30, 2011

ASSETS        

Current Assets        

Cash                                 $291,000

Accounts Receivable                  $30,000

Inventory                           $19,200

Security Deposit                   $10,000

Total Current Assets        $350,200

Total Assets                                 $350,200

 

LIABILITIES        

Current Liabilities

Wages Payable                        $(15,000)

Unearned Revenues                      $10,000 

        Total Current Liabilities         $(5,000)

        

Total Liabilities                                 $(5,000)

        

STOCKHOLDER'S EQUITY        

Common Stock                         $350,000

Retained Earnings                          $(4,800)

Total Stockholder’s Equity                $345,200

Total Liabilities & Stockholders’ Equity $340,200


Question 3:

Focus on the catering transaction on May 1. Suppose Weber offers a discount of 1% if receivables are paid in 10 days, and the customer takes advantage of this discount each month. How would this affect the revenues, total expenses, net income, and total assets for the six-month period ending June 30, 2011?

Before Discount

With Discount

Revenues

$150,000

Revenues

$149,500

Total Expenses

$168,800

Total Expenses

$168,800

Net Income

$(18,800)

Net Income

$(19,300)

Total Assets

$350,200

Total Assets

$349,700

After the discount, the revenue, net income, and total assets are affected; they decrease by $500 each. This occurs because for the two services provided between May 1st and June 30th, each will pull in $250 less in receivable earnings than before the discount, which directly effects the retained earnings for the service as well as assets.

...

...

Download as:   txt (3.6 Kb)   pdf (61.3 Kb)   docx (13.1 Kb)  
Continue for 3 more pages »
Only available on Essays24.com