Ferraro consulting provides risk management services to

Reference no: EM13600943

Ferraro Consulting provides risk management services to individuals and to coorporate clients.The company closes its temporary accounts once each year on December 31. The Company recently issued the following income statement as part of its annual report

Ferraro Consulting
income statement
For the year Ended December 31,2007

Revenue
Consulting Revenue-individual client.............................................. $ 40,000
Consulting Revenue-individual client.............................................. 160,000
= $ 200,000

Expenses
Advertising Expense..............................................$ 16,000
Depriciation expense :computers..............................$ 24,000
Rent Expense......................................................$ 9,600
Office supplies expense......................................... $ 4,400
Travel Expense....................................................$ 57,800
Utilities Expense..................................................$ 3,300
Telephone & Internet Expense.................................$ 1,900
Salaries Expense..................................................$155,500
Interest Expense................................................. $ 2,500 275,000
$(75,000)
The firm's statement of retained earnings indicates that a $25,000 cash dividend was declaared and paid in 2007
(a) Prepare the necessary closing entries on December 31,2007
(b) If the firm's Retained Earnigs account had a $300,000 balance on jan 1,2007, at what amount should Retained Earnings be reported in the firm's balance sheet dated december 31st,2007?

Reference no: EM13600943

Questions Cloud

Signature pen company manufactures ballpoint and fountain : signature pen company manufactures ballpoint and fountain pens and is operating at less than full capacity. market

Beck company reported the following balances at december 31 : beck company reported the following balances at december 31 2011 common stock 397710 paid-in capital in excess of par

Determine the cost of the finished goods inventory reported : at the end of the first year of operations 2700 units remained in the finished goods inventory. the unit manufacturing

Compute the incremental unit cost of producing an : sutherland manufactures and sells 110000 laser printers each month. a principal component part in each printer is its

Ferraro consulting provides risk management services to : ferraro consulting provides risk management services to individuals and to coorporate clients.the company closes its

The first unit required 9800 hours to manufacture the : the first unit required 9800 hours to manufacture. the company expects to experience an 82 unit learning curve.

Prepare the stockholders equity section of the balance : on january 1 2012 hammermeister inc. had the following stockholders equity account balances. common stock no-par value

What is a master budget what are some of the underlying : what is a master budget? what are some of the underlying budgets that form the master budget? what is the budgeting

What is the difference between external and internal : what is the difference between external and internal pricing? what factors must be considered when setting internal

User Account

All Pages