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Hi, could you show the Income statements and the journal entries. Thank you! Create dr/cr style journal entries for these, Green-Car-Co. events: a. Buys a
Hi, could you show the Income statements and the journal entries. Thank you!
Create dr/cr style journal entries for these, Green-Car-Co. events: a. Buys a car to refurbish for $18,000 plus $100 for delivery to GCC's shop. (All of this is inventory). GCC pays for the car on a credit card and pays the transportation fee in cash. b. Works on the car (in its one-bay, one-worker shop) for 3 days, during which time no expenses are paid (except as explicitly stated otherwise), and: i) Its refurbishing worker's daily salary is $200. ii) The CFO's daily salary is $400. iii) The accounting staff daily salary is $220. iv) There are two people in the sales team with a daily salary of $80/person. v) GCC's building rent and utilities cost is $100/day, 40% of which is used by the shop and 60% is used by GCC's headquarters, which sits over the shop. vi) The car's AC unit is broken by accident, making it completely worthless. The estimated cost of the unit is $500. vii) A new AC unit is purchased for $500 on account (ie: GCC is invoiced for the purchase), and installed by the shop worker during this three-day period. c. At the end of the third day, GCC sells the car for $30,000, receiving $20,000 in cash and an interest-free note for the remaining $10,000. Assignment: A. Prepare a highly-itemized Income Statement for the period. (IE: the type of Income Statement that you have prepared in previous homeworks). B. Did the company profit during the period of this problem? Why or why not? C. Prepare another Income Statement for the period, aggregating everything you can into SGA. D. During the period of this problem, has the company's cash increased or decreasedStep by Step Solution
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