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Make an income statement based on the following transactions for September for GameCenter, a company that sells board games. GameCenter records adjusting entries at the
Make an income statement based on the following transactions for September for GameCenter, a company that sells board games. GameCenter records adjusting entries at the end of each month. (Include 'Gross Profit' subtotal and clearly identify 'Net Income/Loss')
- In September GameCenter sold $13,664 of games and the cost of these games totaled $6,000. All sales were paid with cash.
- GameCenter paid $1,000 of rent for September and prepaid $1,000 of Octobers rent
- GameCenter sold $500 of gift cards in September. At the end of September none of the gift cards had been redeemed. The customers paid with cash for the gift cards.
- Employee wages for September totaled $2,010; these will be paid during the first week of October
What is the total net income that GameCenter will report on its income statement for September?
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