Using the Following Accounts and Their Amounts, Prepare in Good

question 214

Essay

Using the following accounts and their amounts, prepare in good format a balance sheet for Bright Futures Company for the month ended August 31. $\begin{array}{lr}\text { Telephone expense } & \$ 1,150 \\\text { Cash } & 3,000 \\\text { Accounts payable } & 1,540 \\\text { Dividends } & 800 \\\text { Fees eamed } & 15,700\\\text { Rent expense } & 1,400 \\\text { Supplies } & 140 \\\text { Accounts receivable } & 1,500 \\\text { Computer equipment } & 20,000 \\\text { Stockholders' equity August 1) } & 14,320 \\\text { Wages expense } & 4,800 \\\text { Utilities expense } & 750 \\\text { Notes payable } & 2,400 \\\text { Office expense } & 420\end{array}$

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Definitions:

Profit Margins

An indicator of a company's financial health, calculated as the difference between revenue and expenses in relation to revenue.

Employee Benefits

Compensation in forms other than cash.

Nonunion Operations

Workplaces or businesses that do not have their employees represented by a labor union or similar worker's association.

Turnover

The rate at which employees leave a company and are replaced by new employees over a given period.