The Accounts of Garfield Company with the Increases or Decreases

question 131

Short Answer

The accounts of Garfield Company with the increases or decreases that occurred during the past year are as follows:
Account Increase Decrease
Cash $25,000
Accounts receivable $(5,000)
Accounts payable (11,000)
Notes payable 16,000
Except for net income,an investment of $3,000 by the owner,and a withdrawal of $11,000 by the owner,no other items affected the owner's capital account.Using the balance sheet equation,compute net income for the past year.

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Definitions:

Consequential Damages

Refer to indirect losses that one party causes another as a result of failing to fulfill a duty or breach of contract, which were foreseeable at the time the contract was made.

Personal Injury

Physical or emotional harm suffered by an individual, often leading to legal action for damages.

Breach

The violation or breaking of a law, duty, or other form of agreement.

Goods Not Yet Delivered

Refers to items that have been sold or ordered but have not been physically moved or handed over to the buyer or recipient.