The accountant for Scott Industries prepared the following list of account balances from the company’s records for the year ended December 31. Use this information to answer the questions that follow. ​   Fees Earned $165,000   Cash $30,000   Accounts Receivable 16,000   Selling Expenses 44,000   Equipment 64,000   Common Stock 47,000   Accounts Payable 12,000   Interest Revenue 3,000   Salaries & Wages Expense 40,000   Income Taxes Expense 18,000   Income Taxes Payable 5,000   Rent Expense 20,000 ​Based on this information, is Scott Industries profitable?  Explain your answer.

Karen Meyer owns and operates Crystal Cleaning Company. Recently, Meyer withdrew $10,000 from Crystal Cleaning, and she contributed $6,000, in her name, to the American Red Cross. The contribution of the $6,000 should be recorded on the accounting records of which of the following entities?

A summary of cash flows for Evelyn’s Event Planning for the year ended December 31 follows: Cash receipts:        Cash received from customers $57,360      Cash received from bank loan 15,000 ​ Cash payments:        Cash paid for operating expenses $12,120      Cash paid for equipment 18,070      Cash paid for party supplies 9,480      Dividends 12,000     Cash balance as of January 1 $15,580 ​ Prepare a statement of cash flows for Evelyn’s Event Planning for the year ended December 31.

Discuss internal and external users of accounting information. What areas of accounting provide them with information? Give an example of the type of report each type of user might use.

Which of the following is not an example of a manufacturing business?

Cash investments made by the owner in the business are reported on the statement of cash flows in the

Selected transaction data of a business for September are summarized as follows:   Service sales charged to customers on account during September $33,000 Cash received from cash customers for services performed in September 28,000 Cash received from customers on account during September:        Services performed and charged to customers prior to September 13,000      Services performed and charged to customers during September 18,000 Expenses incurred prior to September and paid during September 6,500 Expenses incurred and paid in September 36,250 Expenses incurred in September but not paid in September 5,000 Expenses for supplies used and insurance (not included above)    applicable to September 2,000 ​ Determine the following amounts for September: (a) total revenue, (b) total expenses, (c) net income.

A company had the following data for two recent years:    Dec. 31, Year 2       Dec. 31, Year 1 Total liabilities                      $128,250                 $120,000 Total stockholders’ equity         95,000                     80,000 Compute the ratio of liabilities to stockholders’ equity for each year.  Round to two decimal places.

The assets and liabilities of Thompson Computer Services at March 31, the end of the current year, and its revenue and expenses for the year follow. The common stock was $120,000 and the retained earnings was $60,000 at April 1, the beginning of the current year. During the year, shareholders purchased an additional $25,000 in stock. Use this information to answer the questions that follow. Accounts payable $   2,000   Miscellaneous expense $  1,030 Accounts receivable 10,340   Office expense 1,240 Cash 21,420   Supplies 1,670 Fees earned 73,450   Wages expense 23,550 Land 47,000   Dividends 16,570 Building 157,630       ​Use the following information to determine the net income or net loss: ​ Beginning stockholders’ equity          $58,000 Ending stockholders’ equity                 30,000 Stockholder dividends                         25,000 ​

The using up of supplies on hand has what effect on the accounting equation?