Analysis of Income Statement Items Jake Redding owns and operates a tire and auto repair shop named Jake’s Jack ’em and Fix ’em Shop as a sole proprietorship.

During the month, the following events occurred:

1. The shop charged customers $8,300 for repair work completed.

2. The total cost of parts used in repair work during the month was $2,700.
. Jake earned $120 interest in his personal savings account.
4. Jake paid $600 for monthly rent on the repair shop and $150 for monthly rent for a small building behind the repair shop that he uses as living quarters.
5. Jake paid $250 for utilities for the month for the repair shop and $50 for utilities for his living quarters.
6. Jake paid his friend Clem $320 for helping him at the repair shop during the month and another $40 for painting his bedroom.
7. Other expenses related to operating the repair shop for the month totaled $1,400.
8. Jake incurred costs for food and other miscellaneous living expenses of $390.
Using the concepts discussed in this chapter, determine the amounts that would properly be reported in the income statement for Jake’s Jack ’em and Fix *em Shop. If an item is excluded, explain why.
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