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  • Nov 25, 2010, 01:56 PM
    newp
    accouting problem
    Hi , can you help to solve this question

    Winterbotham Corporation provided the following listing of financial statement elements and their respective balances. The periodic amounts relate to the year ending December 31, 20X5, and the point-in-time amounts reflect balances as of December 31, 20X5, unless otherwise implied. Unfortunately, the company has been unable to locate its listing of assets, but all other information is incomplete, albeit in disarray.
    Capital stock $250,000
    Wage expense 40,000
    Revenue 80,000
    Rent expense 22,000
    Beginning retained earnings 89,000
    Utilities expense 11,000
    Accounts payable 12,500
    Dividends 2,500
    Notes payable 50,000

    (a) Determine Winterbotham's net income for the year ending December 31, 20X5.

    (b) How much are total assets of the company, as of December 31, 20X5?

    (c) If you were told that assets included an accounts receivable of $5,000 for services provided during 20X5, and that such transactions had been excluded in calculating the given "revenue" amount, how would this influence your answer to part (a) above?

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