The Assets and Liabilities of S&P Day Spa at December

question 124

Essay

The assets and liabilities of S&P Day Spa at December 31, 2014 and expenses for the year are listed below. The capital of the owner was $68,000 at January 1, 2014. The owner invested an additional $10,000 during the year. Net income for 2014 is $45,625.
$\begin{array}{|l|l|l|l|}\hline \text { Accounts Payable } & \$ 4,375 & \text { Spa Operating Expense } & \$ 23,760 \\\hline \text { Accounts Receivable } & \$ 8,490 & \text { Office Expense } & \$ 2,470 \\\hline \text { Cash } & \$ 13,980 & \text { Spa Supplies } & \$ 9,230 \\\hline \text { Fees Earned } & ? ? & \text { Wages Expense } & \$ 26,580 \\\hline \text { Spa Furniture \& Equipment } & \$ 56,000 & \text { Drawing } & \$ 38,170 \\\hline \text { Computers } & \$ 2,130 & & \\\hline & & & \\\hline\end{array}$ Prepare an income statement for the current year ended December 31, 2014.

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Definitions:

Final Crisis

A significant, potentially destabilizing event or period seen as the concluding phase of a situation or era.

Despair

a state of mind characterized by feelings of loss, hopelessness, or pessimism.

Coping

Strategies or mechanisms employed by individuals to handle, manage, or adapt to stress and difficult situations in life.

Stress

(1) Physical or psychological demands on a person or organism. (2) Response to physical or psychological demands.