Presented Below Is a Balance Sheet for Jim Henson Yard

question 179

Essay

Presented below is a balance sheet for Jim Henson Yard Service at December 31, 2008.
The following additional data are available for the year which began on January 1: All expenses (excluding supplies expense) total $6,000. Supplies on January 1, were $11,000 and $5,000 of supplies were purchased during the year. Net income for the year was $8,000 and drawings were $6,000.
Instructions
Determine the following: (Show all computations.)
1. Supplies used during the year.
2. Total expenses for the year.
3. Service revenues for the year.
4. Jim Henson's capital balance on January 1.

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Definitions:

Compensation Mechanism

A system or method used to determine and distribute salary, benefits, and other forms of pay to employees in exchange for their work.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Medical Coverage

A type of insurance plan that covers the cost of an individual's medical and surgical expenses.

Dental Coverage

Health insurance benefits that cover costs associated with dental care, including preventative services, treatments, and surgeries.