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

question 14

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 an income statement for Rocky's Day Spa for the current year ended December 31.

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Definitions:

Aquifer

An underground layer of water-bearing permeable rock, rock fractures, or unconsolidated materials (gravel, sand, or silt) from which groundwater can be extracted.

Snowmelt

The process where accumulated snow and ice melt, often contributing to spring floods and replenishing rivers and aquifers.

Storm Runoff

This is the precipitation that flows over land surfaces and eventually enters water bodies, often carrying pollutants.

Freshwater

Water that has a low salt content, found in rivers, lakes, streams, and underground, essential for drinking, agriculture, and industry.