Washington Co. began operations on January 1, 2013, by issuing $10,000 in common stock to the stockholders. On March 1, 2013, Washington accepted an advance of $18,000 to provide services for a one-year period beginning April 1. During 2013, services in the amount of $16,000 were provided to customers on account, and 80% of this amount was collected by year-end. During 2013, operating expenses incurred on account were $12,000, and 60% of this amount was paid by year-end. During the year, Washington paid $600 to purchase supplies. By year-end, $540 of the supplies had been used. Dividends to stockholders were $1,000 during the year. During 2013, Washington paid salaries of $14,000, and on December 31, 2013, the company accrued salaries of $1,400.
Washington recorded all appropriate adjusting entries at year end.
1) What would Washington report for service revenue for 2013?
2) What would Washington report for salaries expense for 2013?
3) What would Washington report for supplies expense for 2013?
4) What would the amount be for net cash flows from operating activities for 2013?
5) What is the net income for 2013?
6) What would the balance in the retained earnings account be at December 31, 2013?

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The Answer of Washington Co. began operations on January 1, 2013, by issuing $10,000 in common stock to the stockholders. On March 1, 2013, Washington accepted an advance of $18,000 to provide services for a one-year period beginning April 1. During 2013, services in the amount of $16,000 were provided to customers on account, and 80% of this amount was collected by year-end. During 2013, operating expenses incurred on account were $12,000, and 60% of this amount was paid by year-end. During the year, Washington paid $600 to purchase supplies. By year-end, $540 of the supplies had been used. Dividends to stockholders were $1,000 during the year. During 2013, Washington paid salaries of $14,000, and on December 31, 2013, the company accrued salaries of $1,400.
Washington recorded all appropriate adjusting entries at year end.
1) What would Washington report for service revenue for 2013?
2) What would Washington report for salaries expense for 2013?
3) What would Washington report for supplies expense for 2013?
4) What would the amount be for net cash flows from operating activities for 2013?
5) What is the net income for 2013?
6) What would the balance in the retained earnings account be at December 31, 2013?