I need YEAR 1, 2 and 3 Accrual Basis Net Incomes!
Hathaway Health Club sold three-year memberships at a reduced rate during its opening promotion. It sold 1,000 three-year, nonrefundable memberships for $366 each. The club expects to sell 100 additional three-year memberships for $900 each over each of the next two years. Membership fees are paid when clients sign up. The club's bookkeeper has prepared the following income statement for the first year of business and projected income statements for Years 2 and 3.
Year 1 Year 2 Year 3
Sales: $366,000 $90,000 $90,000
Equipment: $100,000 $0 $0
Salaries and Wages: $50,000 $50,000 $50,000
Advertising: $5,000 $5,000 $5,000
Rent and Utilities: $36,000 $36,000 $36,000
HELP!
2007-10-04
18:45:29
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1 answers
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asked by
mr.paulio
2