Using the Following Accounts and Their Amounts, Prepare in Good

question 83

Essay

Using the following accounts and their amounts, prepare in good format an Income Statement for Bright Futures Company, month ended August 31, 2011:
$\begin{array}{ll}\text { Telephone Expense } & \$ 1,150 \\\text { Cash } & \$ 3,000 \\\text { Accounts Payable } & \$ 1,540 \\\text { Jason Bright, Drawing } & \$ 800 \\\text { Fees Earned } & \$ 15,700 \\\text { Rent Expense } & \$ 1,400 \\\text { Supplies } & \$ 140 \\\text { Accounts Receivable } & \$ 1,500 \\\text { Computer Equipuent } & \$ 20,000 \\\text { Jason Bright, Capital } & \$ 14,320 \\\text { Wages Expense } & \$ 4,800 \\\text { Utilities Expense } & \$ 750 \\\text { Notes Payable } & \$ 2,400 \\\text { Office Expense } & \$ 420\end{array}$

Differentiate between financial and managerial accounting, including their focuses, uses, and user bases.

Identify and explain the components and importance of the cost of goods manufactured schedule.

Comprehend the calculation and significance of inventory turnover ratios.

Recognize the difference between direct and indirect costs, including labor and materials.

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Definitions:

Selling and Administrative Expenses

Expenses that are not directly related to the production of goods, including costs related to the selling of products and managing the business.

Merchandise Inventory

Goods a company intends to sell to customers that are considered a current asset on the balance sheet.

Cash Budget

A financial plan that estimates a company's cash inflows and outflows over a specified period, helping in managing liquidity.

Cash Disbursements

The process of paying out money from a company or individual's cash account, usually including expenses, debt payments, and other financial transactions.