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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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