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Income Statement QUESTION 1 Top of Form The following is a summary of transactions for January 20xx, gathered by the Sample Cafe bookkeeper. Sample Cafe
Income Statement
QUESTION 1
Top of Form
The following is a summary of transactions for January 20xx, gathered by the Sample Cafe bookkeeper.
Sample Cafe Transactions
Item | Notes |
---|---|
7,600medium cups of coffee sold at $3.00 each | Includes 400medium cups medium cups sold to the college and delivered to a reception that has been invoiced, but not yet paid. |
4,300large cups of coffee sold at $4.00 each | |
Espresso maker purchased last year for $11,400 | 5-year life |
$600 premium for business insurance | Premium for full year |
$3,200 for rent | Includes $2,100 in rent deposits. |
$2,200 for coffee beans | Includes coffee discarded valued at $100 |
$1,600 for coffee cups | 0 cups in inventory at the beginning of January. $600 worth of cups still in inventory at the end of month. |
$15,500 to employees for payroll | $2,200 owed in payroll taxes |
$100 of interest on loan | Paid mid-month |
$900 for electricity and water | Includes $500 in utility deposits |
$12,000 in advertising | $3,000 per week billed monthly |
Use the preceding transaction information to Cash-Based Income Statementfor January using the following template.
Account | Balance |
---|---|
Revenues | $ |
Expenses | |
Coffee and Cups | $ |
Salaries and Wages | $ |
Rent and Utilities | $ |
Advertising | $ |
Insurance | $ |
Equipment | $ |
Interest | $ |
Other Expenses | $ |
Total Expenses | $ |
Net Income | $ |
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