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Sat Inc. started operations on 1/1/20.  By the end of first…

Posted byAnonymous December 17, 2024December 18, 2024

Questions

Sаt Inc. stаrted оperаtiоns оn 1/1/20.  By the end of first month, i.e. by January 31, 2020, the following transactions had taken place: Products sold and delivered to customers: $85,000; of this $15,000 is yet to be collected Cash borrowed from Bank $25,000 on 1/1/20 (Interest is due at an annual rate of 12%). Equipment purchased on January 1/1/2020 for $90,000.  The firm uses straight line method depreciation and assumes a useful life of 3 years for the equipment. Wages earned by employees for work done during January $36,000.  One-sixth of this amount is yet to be paid. Supplies inventory purchased during the month by paying cash $4,000.  $1,000 of this remains unused on 1/31/20. Maintenance expenses for this month were $31,000.  Payment has been made only for half this amount.  Dividends paid during the month of January amounted to $500. Prepare the Income Statement for the month of January.                                 

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Tags: Accounting, Basic, qmb,

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