On January 1, 20X1, Cliff Constable Started a New Professional

question 103

Essay

On January 1, 20X1, Cliff Constable started a new professional corporation, Cliff Constable, LLC., to practice medicine with an initial investment of $50,000. On June 30, 20X1 the accounting records contained the following amounts: $$\begin{array} { | l | r | } \hline \text { Trade Payables } & \$ 100 \\\hline \text { Trade Receivables } & 3,900 \\\hline \text { Cash } & 25,100 \\\hline \text { Share Capital } & 50,000 \\\hline \text { Office Equipment } & 24,000 \\\hline \text { Office Supplies } & 500 \\\hline \text { Retained Earnings } & 3,400 \\\hline\end{array}$$ Prepare a statement of ?nancial position at June 30, 20X1.

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Definitions:

Unit Selling Price

The amount of money charged for one unit of a product or service.

Break-even Point

The point at which total costs equal total revenue, meaning no profit or loss is generated.

Manufacturing Margin

The difference between the cost of manufacturing the product and the price it is sold for, indicating the profitability of production.

Variable Cost

Costs that change in proportion to the level of activity or volume of production in a company.