Fundemental accounting quations.
Required : journalize the above june transactions.
2. peresented below is the financial information for XYZ company during December 31,2020. XYZ
Company reports financial information monthly.
Equipment $ 150,000
Cash $ 30,000
Service Revenue $ 250,000
Rent Expense $ 9,000
Accounts payable $ 8,000
Utilites Expense $ 3,000
Accounts Receivable $11,000
Notes payable $60,000
Dividends $7,000
Required
A determine the total assets of XYZ company at december 31,2020.
B.determine the equity of XYZ at december 31,2020.
C. determine the net income that XYZ company reported for december 2020.
A. To determine the total assets of XYZ Company at December 31, 2020, we add up the values of Equipment, Cash, Accounts Receivable, and Notes Payable:
Total Assets = Equipment + Cash + Accounts Receivable + Notes Payable
Total Assets = $150,000 + $30,000 + $11,000 + $60,000
Total Assets = $251,000
B. To determine the equity of XYZ Company at December 31, 2020, we subtract the total liabilities (Accounts Payable and Notes Payable) from the total assets:
Equity = Total Assets - Total Liabilities
Equity = Total Assets - (Accounts Payable + Notes Payable)
Equity = $251,000 - ($8,000 + $60,000)
Equity = $251,000 - $68,000
Equity = $183,000
C. To determine the net income that XYZ Company reported for December 2020, we need additional financial information such as expenses and other revenues. The provided information only includes Service Revenue and Dividends, but not the related expenses. Without the expenses, we cannot determine the net income.