week 1&2.2

 Due March 24 at 11:59 PM

• Read Chapters 7 through 13.
• Complete the following problem:

I

In 2025, its first year of operations, Thayer Company incurred the following events:

1. Thayer Company performed services for its customers and billed them $100,000.
2. Thayer collected, in cash, $75,000 of the amount billed its customers.  (From a.)
3. Thayer incurred $65,000 of operating expenses on account (they incurred them on credit).
4. Thayer paid, in cash, $40,000 of the accounts payable for operating expenses.  (From d.)
5. Thayer issued common stock and received $80,000 in cash.
6. The company purchased equipment for $15,000 in cash.

REQUIRED:  Answer the following questions and show all calculations:

1. What will be the amount of revenue Thayer will have on its Income Statement?
2. What will be Thayer’s Net Income for the year?
3. What is Thayer’s balance in its Cash account at the end of the year?
4. Why is the amount of Cash different from its Net Income for the year?