The Assets and Liabilities of Rocky's Day Spa at December

question 105

Essay

The assets and liabilities of Rocky's Day Spa at December 31 and expenses for the year are listed below. The stockholders' equity was $68,000 ($48,000 in Common Stock and $20,000 in Retained Earnings) at January 1. The shareholders invested in an additional $10,000 of common stock during the year. Net income for the year is $45,625. $\begin{array}{|l|c|l|r|}\hline \text { Accounts payable } & \$ 4,375 &\text { Spa operating expense } & \$ 23,760 \\\hline \text { Accounts receivable } &8,490& \text { Office expense } & 2,470 \\\hline \text { Cash } & 13,980& \text {Spa supplies } & 9,230 \\\hline \text { Fees earned } &???& \text { Wages expense } & 26,580 \\\hline \text { Spa furniture \& equipment } & 56,000& \text { Dividends } & 38,170 \\\hline \text { Computers } & 2,130 & \\\hline\end{array}$ ?
Prepare a balance sheet for Rocky's Day Spa for the year ended December 31.

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Definitions:

Normal Distribution

A bell-shaped curve that represents the distribution of many types of data where most values cluster around the mean or average, showing that data near the mean are more frequent in occurrence.

High Average

A term typically used to describe scores or performance that are above the median but not exceedingly high, often used in statistical and educational assessments.

Mental Age

A measure of an individual's cognitive ability compared to the average cognitive ability of an age group.

Terman's Formula

A method developed by Lewis Terman for estimating intelligence quotient (IQ) based on the ratio of mental age to chronological age, multiplied by 100.