At the end of its first year of operations, shapiro's consulting services reported net income of $27,000. they also had account
balances of: cash, $16,000; office supplies, $3,200; equipment, $24,000 and accounts receivable, $8,000. the owner's total investment for this first year was $15,000 and the owner withdrew $2,000 for personal use. what are the total liabilities of shapiro's consulting services at the end of the first year of operations?
Note that the total assets is obtained by adding the amount (or value) of the all the assets listed above.
Since the net income is an increase (or decrease if it's a net loss) of capital, we classify net income as capital. In particular, the net income of Shairo's at the end of first year adds to the capital at the start of first year.
Moreover, the withdrawal of money by the owner also decreases the capital.
Thus, the total capital at the end of first year is calculated as follows:
Capital (start of the year): $15,000 Net Income (end of year): $27,000 Withdrawal Amount: ($2,000) TOTAL CAPITAL: $40,000
Note: ($2,000) means -$2,000. This notation is used in accounting.
Hence using equation (1), the total liabilities at the end of first year is given by
The correct answer is agents and brokers. Agents and brokers are considered to be a non-manufacturing traders by which they sell, buy, or even facilitate the traded products of which the goods that they sell are not theirs or they didn't actually owned it.
You are correct. At this point in her life, it is not useful in a career search for Adrianna to reflect on her past mistakes. That will not help guide her future career decisions at this point.
