Answered

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The records of Felix Company show the following at December 31, 2024
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Requirements
1. Compute the missing amount for Felix Company You will need to work through owner's equity.
2. Did Felix earn a net income or suffer a net loss for the year? Compute the amount
Requirement 1. Compute the missing amount for Felix Company You will need to work through owner's equity
Begin by working through owner's equity Rework the accounting equation and then solve for owner's equity (equity) at the beginning and end of the period
Assets
Liabilites
Equity
Beginning
Ending
O
II
,C
m
7
O
N
5
Data table
Assets & Liabilities:
Beginning:
Assets
Liabilities
Ending:
Assets
Liabilities
69%
$ 67,000
11,000
$ 46,000
34,000
Print
Rain....
^
Equity:
Owner contribution
Owner withdrawal
Revenues
Expenses
Done
Ba
e
C
G
▪
$
11,000
8,000
205,000
?
- X
628 PM

Sagot :

anthougo

1. The missing amount (Expenses) for Felix Company, using the owner's equity method, is $252,000.

2. Felix suffered a net loss of $47,000 for the year.

What is a net loss?

A net loss shows that the expenses for the period exceed the revenue.

When the revenue exceeds the expenses for the accounting period, there is a net income.

The income statement is used to report the financial performance of a business for a period, determining its net income or loss.

Data and Calculations:

                 Assets             Liabilities         Equity

Beginning 67,000              11,000          56,000

Ending      46,000            34,000           12,000

Data Table:

Owner contribution $11,000

Owner withdrawal     8,000

Revenue 205,000

Expenses ?

Expenses = Revenue - Net Income

Equity:

Beginning equity + contribution - withdrawal + Revenue - Expenses = Ending equity

Equity = $56,000 + 11,000 - 8,000 + 205,000 - x = $12,000

= 272,000 - 8,000 - x = 12,000

= 264,000 - x = 12,000

x = 252,000 (264,000 - 12,000)

Net loss = Revenue - Expenses

= $205,000 - $252,000

= ($47,000)

Thus, Felix Company's expenses for the year exceed the revenue, resulting in a net loss of $47,000.

Learn more about the income statement at https://brainly.com/question/15169974

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