Income Statement

QUESTION 1

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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 toAccrual-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	$