g). Problem 20 Cnartan started a mobile ice cream service on January 2, 20X5, depositing $10,000 of her unds in a bank account in the name of Spartan Mobile Ice Cream. She purchased a fully auipped...

Extracted text: g). Problem 20 Cnartan started a mobile ice cream service on January 2, 20X5, depositing $10,000 of her unds in a bank account in the name of Spartan Mobile Ice Cream. She purchased a fully auipped truck and operated the business on a cash accounting basis for the first year. She provided you with the following information: 1. She purchased a $30,000 fully equipped truck in early January that is depreciable at 25 percent per year. She paid $5,000 cash and financed $25,000 on a note at 6 percent interest.


Extracted text: 44 Chapter 1 ot irithoviril 2. She has $8,000 cash in the bank at the end of the year. * Fier receipts for cash purchases of ice cream total $20,000. * The value of her ice cream inventory at the end of the year is $500. 5. She paid $1,500 cash for all truck operating costs. In addition, she has an unpaid invoice for a recent equipment repair in the amount of $400. She paid $1,500 of interest on the loan and $2,000 to reduce the loan balance. 6. 7. She took $1,500 a month from the business for twelve months to live on. For simpliih purposes treat this as wages expense. 8. She purchased $500 of supplies with cash during the year and has $100 on hand at the end of the year. 9. On October 30, she invested $5,000 in a ninety-day certificate of deposit (an investment). Jill admitted she kept no record of the cash sales made during the year. Required: 1. Determine the cash sales for 20X5. 2. Prepare a simple income statement for 20X5 based on accrual accounting.