Question -
Q1) On April 30, 2016, Rudolph Inc. purchased a three-year insurance policy with a cash payment of $ 19,800. Coverage began immediately.
What is the amount of Insurance Expense relating to this insurance policy that will be reported for the year ended December 31, 2016?
Q2) Melody's Piano School operations for the month of May were limited to the following transactions:
- Provided $650 of piano lessons to students who paid in cash.
- Provided $500 of piano lessons on account.
- Collected $375 from students who took piano lessons during April.
- Paid April's piano rental bill of $250.
- Received May's piano rental bill of $300 and set it aside for payment in June.
What is Melody's Net Income for May using the cash basis of accounting?
Q3) A company's financial records at the end of the year including the following amounts:
Cash$70,400 Accounts receivable 28,400 Supplies 4,400 Accounts payable 10,400 Notes payable 5,200 Retained earnings, beginning of year 17,400 Common stock 44,000 Service revenue 50,400 Wages expense 8,400 Advertising expense 5,400 Rent expense 10,400
What is the amount of net income on the income statement for the year?