Ollie Company experienced the following events during its first-year operations: a. Acquired $72,000 cash from the issue of common stock.
b. Borrowed $26,000 from the First City Bank.
c. Earned $59,000 of cash revenue.
d. Incurred $43,000 of cash expenses.
e. Paid a $7,000 cash dividend.
f. Paid $43,000 to purchase land.

Required:
a. Identify the events that will affect the income statement.
b. Prepare an income statement that shows the results of Year 1 operations.

a. Events that will affect the income statement are :

b. Income statement that shows the results of Year 1 operations.

Revenue Earned             $59,000

Less Expenses :

Expenses                        ($43,000)

Net Income / (Loss)          $16,000

Explanation:

The Income Statement shows the Profit or Loss that resulted during the reporting period.

Only items of Revenue/Income and Revenue Expenditures (Expenses) are accounted for in Income Statement.

Profit or Loss = Sales less Expenses

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi