The solution has been worked out assuming accrual method of accounting.
1. Income Statement
Swing Hard Incorporated | |
Income Statement | $ |
For the Month Ended February 28 | |
Revenues | |
a. Collection for services rendered in Feb. It means services rendered belongs to Feb. Hence, Income accounted in Feb | 25,400 |
b. Sale of gift card for lesson in Feb. Services rendered in Feb. Hence, Income accounted in Feb. | 125 |
c. Receipt of credit sales made in Jan. Income would have already been accounted in Jan. This represents only collection towards sales accounted earlier. Hence, no need to recognize income again. | - |
d. Collection of advance. Represents unbilled revenue/deferred revenue which shall be accounted as liability. Income shall be accounted in June when service performed. | - |
e. Services rendered in Feb. Hence, Income accounted in Feb | 155 |
Total Revenues | 25,680 |
Expenses | |
f. Wages for February | 4,200 |
g. Electricity paid for Jan, would have already been accounted as expense in Jan. No need to account as expense again. | |
h. Electrcity Feb. Accounted as expense in Feb | 910 |
Total Expenses | 5,110 |
Net Income | 20,570 |
Net Profit Margin (%) | 80 |
2. Company's Net Profit Margin is 80%. (Net Income/ Total Revenues *100)
The following transactions are February activities of Swing Hard Incorporated, which offers golfing lessons in the...
The following transactions are February activities of Swing Hard Incorporated, which offers golfing lessons in the northeastern United States. a. Swing Hard collected $20,600 from customers for lesson services provided in February b. Swing Hard sold a gift card for golf lessons for $155 cash in February. C. Swing Hard received $2,300 from credit sales made to customers in January d. Swing Hard collected $2,300 in advance payments for golf lessons to start in June. e. Swing Hard billed a...
The following transactions are February activities of Swing Hard Incorporated, which offers golfing lessons in the northeastern United States. a Swing Hard collected $24,800 from customers for lesson services provided in February b. Swing Hard sold a gift card for golf lessons for $145 cash in February c Swing Hard received $3.300 from credit sales made to customers in January d Swing Hard collected $2.800 in advance payments for golf lessons to start in June. e Swing Hard billed a customer $175 for services provided...
The following transactions are February activities of Swing Hard Incorporated, which offers golfing lessons in the northeastern United States. a. Swing Hard collected $34,400 from customers for lesson services provided in February b. Swing Hard sold a gift card for golf lessons for $175 cash in February c. Swing Hard received $5,700 from credit sales made to customers in January d. Swing Hard collected $3,200 in advance payments for golf lessons to start in June. e. Swing Hard billed a customer $200 for services provided...
The following transactions are February activities of Swing Hard Incorporated, which offers golfing lessons in the northeastern United States. a. Swing Hard collected $17,800 from customers for lesson services provided in February. b. Swing Hard sold a gift card for golf lessons for $105 cash in February. c. Swing Hard received $4,400 from credit sales made to customers in January. d. Swing Hard collected $4,100 in advance payments for golf lessons to start in June. e. Swing Hard billed a customer $135 for services provided...
The following transactions are February activities of Swing Hard Incorporated, which offers golfing lessons in the northeastern United States. a Swing Hard collected $24,800 from customers for lesson services provided in February b. Swing Hard sold a gift card for golf lessons for $145 cash in February c. Swing Hard received $3,300 from credit sales made to customers in January d Swing Hard collected $2,800 in advance payments for golf lessons to start in June e Swing Hard billed a customer $175 for services provided...
The following transactions are February activities of Swing Hard Incorporated, which offers indoor golfing lessons in the northeastern United States. If revenue is to be recognized in February, indicate the amount. Amount a. b. Activity Swing Hard collected $31,600 from customers for lesson services given in February. Swing Hard sold a gift card for golf lessons for $195 cash in February. Swing Hard received $4,500 from services provided on account to customers in January. Swing Hard collected $3,600 in advance...
The following transactions are February activities of Swing Hard Incorporated, which offers indoor golfing lessons in the northeastern United States. If an expense is to be recognized in February, indicate the amount. Amount a. Activity Swing Hard paid $6,600 to its golf instructors for the month of February. Swing Hard paid $3,400 for electricity used in the month of January. Swing Hard received an electricity bill for $1,210 for the month of February, to be paid in March. b. C.
The following transactions are February activities of Swing Hard Incorporated, which offers indoor golfing lessons in the northeastern United States. If an expense is to be recognized in February, indicate the amount. Activit Amount a. Swing Hard paid $2,600 to its golf instructors for the month of February. b. Swing Hard paid $2,500 for electricity used in the month of January. c. Swing Hard received an electricity bill for $1,420 for the month of February, to be paid in March.
The following transactions are February activities of Swing Hard Incorporated, which offers indoor golfing lessons in the northeastern United States. a. Swing Hard paid $6.600 to its golf instructors for the month of February b. Swing Hard paid $3,400 for electricity used in the month of January c Swing Hard received an electricity bill for $1,210 for the month of February, to be paid in March. Prepare journal entries to record the above transactions. (If no entry is required for...
The following transactions are February activities of Swing Hard Incorporated, which offers Indoor golfing lessons in the northeastern United States. a. Swing Hard pald $4,750 to its golf Instructors for the month of February b. Swing Hard pald $1,750 for electricity used in the month of January c. Swing Hard received an electricity bill for $800 for the month of February, to be pald In March. Prepare journal entries to record the above transactions. (If no entry is required for...