Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 2, Problem 2EA
Park and West, LLC, provides consulting services to retail merchandisers in the Midwest. In 2019, they generated $720,000 in service revenue. Their total cost (fixed and variable) per client was $2,500 and they served 115 clients during the year. If operating expenses for the year were $302,000 what was their net income?
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Park and West, LLC, provides consulting services to retail merchandisers in the Midwest. In 2019, they generated $993,729 in service revenue. Their total cost (fixed and variable) per client was $1,217 and they served 268 clients during the year. If operating expenses for the year were $291,276 what was their operating income?
Park and West, LLC, provides consulting services to retail merchandisers in the Midwest. In 2019, they generated $716,000 in service revenue. Their total cost (fixed and variable) per client was $2,700 and they served 125 clients during the year.
If operating expenses for the year were $304,000 what was their net income?
Park and West, LLC
Income Statement
For Year Ending 2019
$fill in the blank 2
fill in the blank 4
$fill in the blank 6
fill in the blank 8
$fill in the blank 10
2. Park and West, LLC, provides consulting services to retail merchandisers in the Midwest. In 2019, they generated $720,000 in service revenue. Their total cost (fixed and variable) per client was $2,500 and they served 115 clients during the year. If operating expenses for the year were $302,000 what was their operating income? Use this information to construct an income statement for the year 2019.
Operating Income
Cash
Retained Earnings
Gross Profit
Cost of Goods Sold
Service Revenue
Cost of Services
Operating Expenses
Sales Revenue
PLEASE NOTE: You must enter the account names exactly as written above and all whole dollar amounts will be with "$" and commas as needed (i.e. $12,345).
Park and West, LLC
Income Statement for Year Ended 2019
Chapter 2 Solutions
Principles of Accounting Volume 2
Ch. 2 - Which of the following is the primary source of...Ch. 2 - Which of the following is the primary source of...Ch. 2 - Which of the following is the primary source of...Ch. 2 - Which of the following represents the components...Ch. 2 - Which of the following represents the components...Ch. 2 - Which of the following represents the components...Ch. 2 - Conversion costs include all of the following...Ch. 2 - Which of the following is not considered a product...Ch. 2 - Fixed costs are expenses that...Ch. 2 - Variable costs are expenses that...
Ch. 2 - Total costs for ABC Distributing are $250,000 when...Ch. 2 - Which of the following would not be classified as...Ch. 2 - Which of the following are prime costs? A....Ch. 2 - Which of the following statements is true...Ch. 2 - The high-low method and least-squares regression...Ch. 2 - Which of the following methods of cost estimation...Ch. 2 - In the cost equation Y=a+bx, Y represents which of...Ch. 2 - A scatter graph is used to test the assumption...Ch. 2 - Identify the three primary classifications of...Ch. 2 - Explain how the income statement of a...Ch. 2 - Walsh & Coggins, a professional accounting firm,...Ch. 2 - Lizzys is a retail clothing store, specializing in...Ch. 2 - Identify and describe the three types of product...Ch. 2 - Explain the difference between a period cost and a...Ch. 2 - Explain the concept of relevant range and how it...Ch. 2 - Explain the differences among fixed costs,...Ch. 2 - Explain the difference between prime costs and...Ch. 2 - Explain how a scatter graph is used to identify...Ch. 2 - Explain the components of the total cost equation...Ch. 2 - Explain how the high-low method is used for cost...Ch. 2 - Magio Company manufactures kitchen equipment used...Ch. 2 - Park and West, LLC, provides consulting services...Ch. 2 - Canine Couture is a specialty dog clothing...Ch. 2 - Hicks Contracting collects and analyzes cost data...Ch. 2 - Rose Company has a relevant range of production...Ch. 2 - Carr Company provides human resource consulting...Ch. 2 - Western Trucking operates a fleet of delivery...Ch. 2 - Suppose that a company has fixed costs of $18 per...Ch. 2 - The cost data for Evencoat Paint for the year 2019...Ch. 2 - This cost data from Hickory Furniture is for the...Ch. 2 - Markson and Sons leases a copy machine with terms...Ch. 2 - Markson and Sons leases a copy machine with terms...Ch. 2 - Winterfell Products manufactures electrical...Ch. 2 - CPK ** Associates is a mid-size legal firm,...Ch. 2 - Flip or Flop is a retail shop selling a wide...Ch. 2 - Roper Furniture manufactures office furniture and...Ch. 2 - Baxter Company has a relevant range of production...Ch. 2 - Sanchez & Vukmin, LLP, is a full-service...Ch. 2 - Case Airlines provides charter airline services....Ch. 2 - Suppose that a company has fixed costs of $11 per...Ch. 2 - The cost data for BC Billing Solutions for the...Ch. 2 - This cost data from Hickory Furniture is for the...Ch. 2 - Able Transport operates a tour bus that they lease...Ch. 2 - Able Transport operates a tour bus that they lease...Ch. 2 - Ballentine Manufacturing produces and sells...Ch. 2 - Tom West is a land surveyor who operates a small...Ch. 2 - Just Beachy is a retail business located on the...Ch. 2 - Listed as follows are various costs found in...Ch. 2 - Wachowski Company reported these cost data for the...Ch. 2 - Carolina Yachts builds custom yachts in its...Ch. 2 - Hicks Products produces and sells patio furniture...Ch. 2 - Conner ** Scheer, Attorneys at Law, provide a wide...Ch. 2 - Puzzles, Pranks ** Games is a retail business...Ch. 2 - Pocket Umbrella, Inc. is considering producing a...Ch. 2 - Using the costs listed in the previous problem,...Ch. 2 - Gadell Farms produces venison sausage that is...Ch. 2 - In a team of two or three students, interview the...Ch. 2 - This list contains costs that various...
Additional Business Textbook Solutions
Find more solutions based on key concepts
Discussion Questions 1. What characteristics of the product or manufacturing process would lead a company to us...
Managerial Accounting (4th Edition)
(Record inventory transactions in the periodic system) Wexton Technologies began the year with inventory of 560...
Financial Accounting (11th Edition)
Determine and record job costs (Learning Objectives 2, 3, 4, 6) Veon Homes manufactures prefabricated chalets ...
Managerial Accounting (5th Edition)
(Record inventory transactions in the periodic system) Wexton Technologies began the year with inventory of 560...
Financial Accounting (12th Edition) (What's New in Accounting)
Basic accounting equation (Learning Objective 5) 10-15 min. Hanson Corp. ? 44,900 + 10,300 Tiny Tots Daycare In...
Financial Accounting, Student Value Edition (4th Edition)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Sanchez & Vukmin, LLP, is a full-service accounting firm located near Chicago, Illinois. Last year, Sanchez provided tax preparation services to 500 clients. Total fixed costs were $265,000 with total variable costs of $180,000. Based on this information, complete this chart.arrow_forwardMason, Durant, and Westbrook (MDW) is a tax services firm. The firm is located in Oklahoma City and employs 15 professionals and eight staff. The firm does tax work for small businesses and well-to-do individuals. The following data are provided for the last fiscal year. (The Mason, Durant, and Westbrook fiscal year runs from July 1 through June 30.) Required: 1. Prepare a statement of cost of services sold. 2. Refer to the statement prepared in Requirement 1. What is the dominant cost? Will this always be true of service organizations? If not, provide an example of an exception. 3. Assuming that the average fee for processing a return is 850, prepare an income statement for Mason, Durant, and Westbrook. 4. Discuss three differences between services and tangible products. Calculate the average cost of preparing a tax return for last year. How do the differences between services and tangible products affect the ability of MDW to use the last years average cost of preparing a tax return in budgeting the cost of tax return services to be offered next year?arrow_forwardDuring May, 2020, Samoul’s Supply Store generated revenues of $180,000. The company’s expenses were as follows: cost of goods sold of $72,000 and operating expenses of $12,000. The company also had rent revenue of $3,000 and a gain on the sale of a delivery truck of $6,000.Samoul’s income from operations for the month of May, 2020 is $117,000. $111,000. $96,000. $180,000.arrow_forward
- Canine Couture is a specialty dog clothing boutique that sells clothing and clothing accessories for dogs. In 2019, they had gross revenue from sales totaling $180,351. Their operating expenses for this same period were $35,801. If their Cost of Goods Sold (COGS) was 24% of gross revenue, what was their net operating income for the year? Round to the nearest whole dollar, no decimal places.arrow_forwardThe Following are the accounts of Regina Merchandising for December 31,2019: Sales ₱2,500,000 Salaries Expense 50,000 Supplies Expenses 75,000 Depreciation Expense 60,000 Utilities Expense 40,000 Insurance Expense 20,000 Rent Expense 90,000 Beginning Inventory 50,000 Purhases 1,500,000 Ending Inventory 100,000 Sales Discount 5,000 You were employed by the entity as its bookkeeper in its first year of operations. You are now to prepare the necessary financial statements for the current year. Accordingly, 15% of rent, depreciation and utility expenses pertain to the sales office while the rest pertains to the corporate office. Instructions: 1. How much is the net sales for the year? 2. How much is the cost of sales for the year? 3. How much is the gross…arrow_forwardThe Following are the accounts of Regina Merchandising for December 31,2019: Sales ₱2,500,000 Salaries Expense 50,000 Supplies Expenses 75,000 Depreciation Expense 60,000 Utilities Expense 40,000 Insurance Expense 20,000 Rent Expense 90,000 Beginning Inventory 50,000 Purhases 1,500,000 Ending Inventory 100,000 Sales Discount 5,000 You were employed by the entity as its bookkeeper in its first year of operations. You are now to prepare the necessary financial statements for the current year. Accordingly, 15% of rent, depreciation and utility expenses pertain to the sales office while the rest pertains to the corporate office. Instructions: 1. How much is the net sales for the year? 2. How much is the cost of sales for the year? 3. How much is the gross profit of the year? The Following are the accounts of Regina Merchandising for December 31,2019: Sales ₱2,500,000 Salaries Expense 50,000 Supplies Expenses 75,000 Depreciation Expense 60,000 Utilities Expense 40,000 Insurance Expense…arrow_forward
- Pandora Corporation operates several factories in the Midwest that manufacture consumer electronics. The December 31, 2021, year-end trial balance contained the following income statement items: Account Title Debits CreditsSales revenue $ 12,500,000Interest revenue 50,000Loss on sale of investments $ 100,000Cost of goods sold 6,200,000Selling expense 620,000General and administrative expense 1,520,000Interest expense 40,000Research and development expense 1,200,000Income tax expense 900,000 Required:Calculate…arrow_forwardWillie Cheetum is the CEO of Happy Foods, a distributor of produce to grocery store chains throughout the Midwest. At the end of the year, the company’s accounting manager provides Willie with the following information, before any adjustment.Accounts receivable $1,100,000 Estimated percentage uncollectible 9% Allowance for uncollectible accounts $40,000 (credit) Operating income $260,000Willie’s compensation contract states that if the company generates operating income of at least $210,000, he will get a salary bonus early next year. Required: 1. Record the adjustment for uncollectible accounts using the accountant’s estimate of 9% of accounts receivable. 2. After the adjustment is recorded in requirement 1, what is the revised amount of operating income? Will Willie get his salary bonus? 3. Willie instructs the accountant to record the adjustment for uncollectible accounts using 6% rather than 9% of accounts receivable. Now will Willie get his salary bonus? Explain. 4. By how much…arrow_forwardLonghorn Corporation provides low-cost food delivery services to senior citizens. At the end of the year on December 31, 2021, the company reports the following amounts:Cash $ 1,200 Service revenue $67,700Equipment 29,000 Cost of goods sold 53,400Accounts payable 4,400 (food expense)Delivery expense 2,600 Buildings 40,000Salaries expense 5,500 Supplies 3,400 Salaries payable 800In addition, the company had common stock of $40,000 at the beginning of the year and issued an additional $4,000 during the year. The company also had retained earnings of $18,200 at the beginning of the year.Required: Prepare the income statement, statement of stockholders’ equity, and balance sheet for…arrow_forward
- At year end,Elliott counted the office supplies on hand,which amounted to $1500.The firm had $900 of supplies on hand at the start of the year, and had purchased $600 of supplies during the year.What was the total office supplies expense for the year?arrow_forwardDuring August, 2020, Sheffield’s Supply Store generated net sales of $60100. The company’s expenses were as follows: cost of goods sold of $35000 and operating expenses of $4500. The company also had rent revenue of $1000 and a loss on the sale of a delivery truck of $1700. Sheffield’s operating income for the month of August 2020 is $20600.$21600.$19900.$25100.arrow_forwardDuring 2020, Reliable Corporation had cash and credit sales of $21,760 and $15,225, respectively. The company also collected accounts receivable of $9,765 and incurred operating expenses of $27,700, 80% of which were paid during the year. In addition, Reliable prepaid $4,500 for an 18 month advertising campaign that began September 30. Reliable’s accrual basis net income (loss) for the year ending December 31, 2020 was: Group of answer choices A. $8,535 B. $14,075 C. ( $775) D. $9,285arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegeCornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
Understanding U.S. Taxes; Author: Bechtel International Center/Stanford University;https://www.youtube.com/watch?v=QFrw0y08Oto;License: Standard Youtube License