Question 2.8: Horizontal Analysis Two income statements for McCorkle Compa......

Financial Accounting [EXP-43430]

Two income statements for McCorkle Company are shown below.

McCorkle Company
Income Statements
For the Years Ended December 31

	2012	2011
Fees earned	$ 210,000	$ 175,000
Operating expenses	$\underline{172,500}$	$\underline{ 150,000}$
Net income	$\underline{\$ 37,500}$	$\underline{\$ 25,000}$

Prepare a horizontal analysis of McCorkle Company’s income statements.

Step-by-Step

The 'Blue Check Mark' means that this solution was answered by an expert.
Learn more on how do we answer questions.

McCorkle Company
Income Statements
For the Years Ended December 31

	2012	2011	Increase (Decrease)
	2012	2011	Amount	Percent
Fees earned	$210,000	$ 175,000	$ 35,000	20%
Operating expenses	$\underline{172,500}$	$\underline{150,000}$	$\underline{ 22,500}$	15
Net income	$\underline{\$ 37,500}$	$\underline{\$ 25,000}$	$\underline{\$ 12,500}$	50

Related Answered Questions

Question: 2.IP

J. F. Outz, M.D., has been practicing as a cardiologist for three years. During April 2011, Outz completed the following transactions in her practice of cardiology: Apr. 1. Paid office rent for April, $800. 3. Purchased equipment on account, $2,100. 5. Received cash on account from patients, $3,150 ...

Verified Answer:

1., 2., and 3.

Question: 2.5

Missing Amount from an Account On March 1, the cash account balance was $22,350. During March, cash receipts totaled $241,880 and the March 31 balance was $19,125. Determine the cash payments made during March ...

Verified Answer:

Using the following T account, solve for the amoun...

Question: 2.7

Correcting Entries The following errors took place in journalizing and posting transactions: a. A withdrawal of $6,000 by Cheri Ramey, owner of the business, was recorded as a debit to Office Salaries Expense and a credit to Cash. b. Utilities Expense of $4,500 paid for the current month was ...

Verified Answer:

a. Cheri Ramey, Drawing .............................

Question: 2.1

Rules of Debit and Credit and Normal Balances State for each account whether it is likely to have (a) debit entries only, (b) credit entries only, or (c) both debit and credit entries. Also, indicate its normal balance.1. Amber Saunders, Drawing 2. Accounts Payable 3. Cash 4. Fees Earned 5. ...

Verified Answer:

1. Debit entries only; normal debit balance 2. Deb...

Question: 2.2

Journal Entry for Asset Purchase Prepare a journal entry for the purchase of a truck on June 3 for $42,500, paying $8,500 cash and the remainder on account. ...

Verified Answer:

June 3 Truck ................................

Question: 2.3

Journal Entry for Fees Earned Prepare a journal entry on August 7 for the fees earned on account, $ 115,000. ...

Verified Answer:

Aug. 7 Accounts Receivable ..................

Question: 2.4

Journal Entry for Owner’s Withdrawal Prepare a journal entry on December 29 for the payment of $12,000 to the owner of Smartstaff Consulting Services, Dominique Walsh, for personal use. ...

Verified Answer:

Dec. 29 Dominique Walsh, Drawing ................

Question: 2.6

Trial Balance Errors For each of the following errors, considered individually, indicate whether the error would cause the trial balance totals to be unequal. If the error would cause the trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much. a. ...

Verified Answer:

a. The totals are equal since both the debit and...