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

question 18

Essay

The assets and liabilities of S&P Day Spa at December 31,2014 and expenses for the year are listed below.The retained earnings balance was $68,000 at January 1,2014.Net income for 2014 is $45,625.
$\begin{array}{|l|l|l|l|}\hline\text { Accounts Payable } & \$ 4,375 & \text { Spa Operating Expense } & \$ 23,760 \\\hline \text { Accounts Receivable } & \$ 8,490 & \text { Office Expense } & \$ 2,470 \\\hline \text { Cash } & \$ 13,980 & \text { SpaSupplies } & \$ 9,230 \\\hline \text { Fees Earned } & ? ? ? & \text { Wages Expense } & \$ 26,580 \\\hline \text { Spa Furniture \& Equipment } & \$ 56,000 & \text { Dividends } & \$ 38,170 \\\hline \text { Computers } & \$ 2,130 & \text { Capita1 Stock } & \$ 10,000 \\\hline \end{array}$
Prepare an income statement for the current year ended December 31,2014.

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Definitions:

Discrimination Coefficients

Discrimination coefficients quantify the level of differentiation or bias between groups in statistical analysis, often used to measure the extent of inequality in treatment or outcomes.

Labor Demand

The total number of hours that employers want to hire labor at a given wage rate, in a given time period.

Crowding Model

The crowding model is a concept in labor economics that suggests an oversupply of workers in certain sectors can lead to reduced wages and employment opportunities in those sectors.

Domestic Output

The total value of all goods and services produced within a country's borders in a specified time period.