Question

Required information [The following information applies to the questions displayed below.] Starting in May, Nicole has...

Required information [The following information applies to the questions displayed below.] Starting in May, Nicole has decided that she has everything she needs to open her doors to customers. To keep up with competition, Nicole has added gift certificates and has started to advertise her company more to keep her business going in the long term. Here is a sample of some transactions that occurred in the month of May at Nicole’s Getaway Spa (NGS). May 1 Paid $2,950 cash for an insurance policy that covers the period from June 1 until May 31 next year. May 4 Ordered five new massage tables from Spa Supplies Unlimited for $245 each for future delivery. May 7 Provided $795 of spa services to customers on account. May 10 Received spa supplies purchased for $960 on account to use at Nicole’s Getaway Spa. May 13 Received a bill for $48 for running an advertisement in the newspaper in May. The bill was paid in cash. May 16 Paid one-quarter of the amount owed from May 10. May 19 Customers paid $1,650 cash for NGS gift cards. No gift cards have been used. May 20 Obtained financing from the bank by signing a $6,000 two-year note payable. The $6,000 cash was deposited in NGS's bank account May 22 Received two of the massage tables ordered on May 4 and paid for the two tables in cash. May 25 Paid $490 cash for utility bills for services received and billed in May. Calculate NGS’s preliminary net income and net profit margin for the month. (Round "Net Profit Margin" to 1 decimal place.)

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Assume it is now December 31, 2017 and Nicole has just completed her first year of...
Assume it is now December 31, 2017 and Nicole has just completed her first year of operations at Nicole’s Getaway Spa. After looking through her trial balance, she noticed that there are some items that have either not been recorded or are no longer up-to-date. Nicole’s Getaway Spa is renting its space at a cost of $600 per month. On September 1, 2017, Nicole paid eight months’ rent in advance using cash. This prepayment was recorded in the account Prepaid...
Nicole has decided that she is going to start her business, Nicole’s Getaway Spa (NGS). A...
Nicole has decided that she is going to start her business, Nicole’s Getaway Spa (NGS). A lot has to be done when starting a new business. Here are some transactions that have occurred prior to April 30, 2017. Received $80,000 cash when issuing 8,000 new shares. Purchased some land by paying $2,000 cash and signing a note payable for $7,000 due in 2017. Hired a new esthetician for a salary of $1,000 a month, starting next month. Bought $1,000 in...
Required information In October, Nicole eliminated all existing inventory of cosmetic items. The trouble of ordering...
Required information In October, Nicole eliminated all existing inventory of cosmetic items. The trouble of ordering and tracking each product line had exceeded the profits earned. In December, a supplier asked her to sell a prepackaged spa kit. Feeling she could manage a single product line, Nicole agreed. Nicole’s Getaway Spa (NGS) would make monthly purchases from the supplier at a cost that included production costs and a transportation charge. NGS would keep track of its new inventory using a...
Required information [The following information applies to the questions displayed below.] The following events occur for...
Required information [The following information applies to the questions displayed below.] The following events occur for Morris Engineering during 2021 and 2022, its first two years of operations. February 2, 2021 Provide services to customers on account for $31,400. July 23, 2021 Receive $21,500 from customers on account. December 31, 2021 Estimate that 20% of uncollected accounts will not be received. April 12, 2022 Provide services to customers on account for $44,400. June 28, 2022 Receive $6,000 from customers for...
Nicole's Getaway Spa (NGS) has been so successful that Nicole has decided to expand her spa...
Nicole's Getaway Spa (NGS) has been so successful that Nicole has decided to expand her spa by selling merchandise. She sells things such as nail polish, at-home spa kits, cosmetics, and aromatherapy items. Nicole uses a perpetual inventory system and is starting to realize all of the work that is created when inventory is involved in a business. The following transactions were selected from among those completed by NGS in August. Aug. 2 Sold a bundle of spa services with...
Required information [The following information applies to the questions displayed below.] The following events occur for...
Required information [The following information applies to the questions displayed below.] The following events occur for The Underwood Corporation during 2021 and 2022, its first two years of operations. June 12, 2021, Provide services to customers on account for $30,800. September 17, 2021, Receive $16,500 from customers on account. December 31, 2021 Estimate that 45% of accounts receivable at the end of the year will not be received. March 4, 2022, Provide services to customers on account for $45,800. May...
[The following information applies to the questions displayed below.] Nicole’s Getaway Spa (NGS) purchased a hydrotherapy...
[The following information applies to the questions displayed below.] Nicole’s Getaway Spa (NGS) purchased a hydrotherapy tub system to add to the wellness programs at NGS. The machine was purchased at the beginning of the year at a cost of $19,000. The estimated useful life was five years and the residual value was $1,000. Assume that the estimated productive life of the machine is 10,000 hours. Expected annual production was year 1, 2,250 hours; year 2, 2,450 hours; year 3,...
Required information [The following information applies to the questions displayed below.] The transactions of Spade Company...
Required information [The following information applies to the questions displayed below.] The transactions of Spade Company appear below. Kacy Spade, owner, invested $17,750 cash in the company in exchange for common stock. The company purchased office supplies for $515 cash. The company purchased $9,816 of office equipment on credit. The company received $2,095 cash as fees for services provided to a customer. The company paid $9,816 cash to settle the payable for the office equipment purchased in transaction c. The...
Required information [The following information applies to the questions displayed below.] On January 1, 2021, the...
Required information [The following information applies to the questions displayed below.] On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Accounts Debit Credit Cash $ 26,900 Accounts Receivable 49,800 Allowance for Uncollectible Accounts $ 6,000 Inventory 21,800 Land 64,000 Equipment 24,000 Accumulated Depreciation 3,300 Accounts Payable 30,300 Notes Payable (6%, due April 1, 2022) 68,000 Common Stock 53,000 Retained Earnings 25,900 Totals $ 186,500 $ 186,500 During January 2021, the following transactions occur: January...
Required information Skip to question [The following information applies to the questions displayed below.] On October...
Required information Skip to question [The following information applies to the questions displayed below.] On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $83,850 in assets in exchange for its common stock to launch the business. On October 31, the company’s records show the following items and amounts. Retained earnings, October 1 as $0. Cash $ 11,580 Cash dividends $ 1,890 Accounts receivable 13,860 Consulting revenue 13,860 Office supplies 3,140 Rent expense 3,390 Land 46,000...