Thurston Company Started Its Business on January 1, Year 1

question 129

Essay

Thurston Company started its business on January 1, Year 1 by issuing $15,000 of common stock. On March 1, Thurston issued a $27,000, 6% five-year note to Community Bank. Customers paid Thurston $54,000 for services performed in Year 1. The company paid $33,000 for operating expenses, and paid a $900 dividend to the stockholders. At year-end, Thurston recognized interest expense on the note.
Required:a)What is the amount of interest expense Thurston will recognize in Year 1?b)What is the net income for Year 1?

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Definitions:

Oppose Movement

Resistance or counteraction to a physical movement or initiative.

Drawsheet

A sheet placed under patients, allowing healthcare workers to easily reposition them in bed.

Manual Lift

The act of physically lifting or moving an object or person using human strength, without the aid of mechanical devices.

Assess Weight

The process of measuring and evaluating an individual's body weight, often as part of a health examination or fitness assessment.