Use the Following Information Available at the End of 2015

question 9

Essay

Use the following information available at the end of 2015 to prepare an income statement and balance sheet on December 31,2015,for Goldie Company.
Fees for services performed during the year,$120,000
Accounts payable,$18,500
Accounts receivable,$17,300
Miscellaneous costs for the year,$8,700
Supplies on hand,$2,700
Notes payable outstanding,$30,000
Interest cost on the note for the year,$3,000
Equipment,$84,400
Cash on hand,$11,200
Salaries cost for the year,$71,500
Supplies cost for the year,$9,400
Rent cost for the year,$12,000
Common stock that has been issued,$60,000
Retained earnings at the end of the year,$7,100

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Definitions:

Causal Factors

Elements or conditions that contribute to the occurrence of an event or the existence of a condition.

Method of Residues

A scientific and logical method where the known causes of a set of phenomena are subtracted to reveal the remaining causes.

Method of Residues

A method of scientific reasoning where one deducts from a complex set of phenomena the parts already explained, in order to isolate the remainder for new analysis.

Necessary Condition

A prerequisite that must be present for a certain effect or outcome to occur.