Thurston Company Started Its Business on January 1,2016 by Issuing

question 38

Essay

Thurston Company started its business on January 1,2016 by issuing $15,000 of common stock.On January 1,the company purchased equipment for $10,500.The equipment is estimated to have a 3-year useful life and a $1,500 salvage value.On March 1,Thurston issued a $27,000,6% 5-year note to Community Bank.Customers paid Thurston $54,000 for services performed in 2016.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 and depreciation expense on the computer.
Required:
a)What is the amount of interest expense Thurston will recognize in 2016?
b)What is the book (carrying)value of the computer at the end of 2016?
c)What is the net income for 2016?
d)Prepare a balance sheet for 2016.

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Definitions:

Obsessive-Compulsive

Characterized by uncontrollable, recurring thoughts (obsessions) and behaviors (compulsions) that the individual feels the urge to repeat.

Conversion

refers to the process of changing or transforming something from one form to another, such as converting units of measurement or religious beliefs.

PTSD

Post-traumatic Stress Disorder, a mental health condition triggered by experiencing or witnessing a terrifying event, leading to long-term repercussions.

Obsessive-Compulsive Reaction

An obsessive-compulsive reaction refers to repetitive and intrusive thoughts (obsessions) followed by ritualistic behaviors or mental acts (compulsions) that an individual feels driven to perform.