The following is selected information from Motley Corporation for the fiscal yea
ID: 2345280 • Letter: T
Question
The following is selected information from Motley Corporation for the fiscal year ending October 31, 2012.Cash received from customers $300,000
Revenue earned 350,000
Cash paid for expenses 180,000
Cash paid for computers on November 1, 2011 that will be used
for 3 years (annual depreciation is $16,000) 48,000
Expenses incurred, not including any depreciation 220,000
Proceeds from a bank loan, part of which was used to pay for
the computers 100,000
Based on the accrual basis of accounting, what is Motley Corporation
Explanation / Answer
Total Earnings = Total Revenue = $350,000
Total expenses = $220,000 + $16,000 (annual depreciation) = $236,000
Net Income = $350,000 -$236,000 = 114,000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.