The Assets and Liabilities of Rocky's Day Spa at December

question 34

Essay

The assets and liabilities of Rocky's Day Spa at December 31 and expenses for the year are listed below. The stockholders' equity was $68,000 $48,000 in Common Stock and $20,000 in Retained Earnings) at January 1. The shareholders invested in an additional $10,000 of common stock during the year. Net income for the year is $45,625. $$\begin{array} { | l | l | l | l | } \hline \text { Accounts payable } & \$ 4,375 & \text { Spa operating expense } & \$ 23,760 \\\hline \text { Accounts receivable } & 8,490 & \text { Office expense } & 2,470 \\\hline \text { Cash } & 13,980 & \text { Spa supplies } & 9,230 \\\hline \text { Fees earned } & ? ? ? & \text { Wages expense } & 26,580 \\\hline \text { Spa furniture \& equipment } & 56,000 & \text { Dividends } & 38,170 \\\hline \text { Computers } & 2,130 & & \\\hline\end{array}$$ Prepare an income statement for Rocky's Day Spa for the current year ended December 31.

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Definitions:

Heredity

The passing on of physical or mental characteristics genetically from one generation to another.

Social Factors

Elements within a society that influence individuals' behaviors, attitudes, and life outcomes, such as family, education, and economic status.

Attribution Theory

is a psychological theory focused on how individuals interpret events and how this relates to their thinking and behavior, particularly how they assign causality to events and actions.

Declining Economy

A period marked by a decrease in economic activity, leading to lower GDP growth, employment, and spending.