Peters Curling Inc. operates several curling centres (for games and equipment sales). The following transactions occurred in the month of October.

(a)	Peters collected $15,400 from customers for games played in October.
(b)	Peters sold $10,400 in curling equipment inventory; received $6,600 in cash and the rest on account; cost of sales is $6,400.
(c)	Peters received $4,600 from customers on account who purchased merchandise in September.
(d)	The curling league gave Peters a deposit of $5,100 for the upcoming fall season.
(e)	Peters paid $5,600 for the September electricity bill and received the October bill for $6,160 to be paid in November.
(f)	Peters paid $7,600 to employees for work in October.
(g)	Peters purchased $2,280 in insurance for coverage from October 1 to December 31.
(h)	Peters paid $2,800 to plumbers for repairing a broken pipe in the washrooms.

Prepare a statement of earnings for Peters Curling Inc. for the month of October 2017. Use an income tax rate of 40 percent. Here is what I have done : Row 1 : Revenue : 15,400 + 10,400 + 4,600 + 5,100 = 35,500 Row 2 : blank Row 3 : Row 3 forces us to choose either Gross Profit or Gross loss - I chose gross profit but could not get the correct answer Row 4 : Place holder , written as "Expenses :" cannot enter any values either. Row 5 to Row 10 : Listed each expense in it's own row. Row 5 : cost of sales / 6400 unsure why this is wrong Row 6 : utilities / 5600 unsure why this is wrong Row 7 : Salaries / 7600 is correct Row 8 : Insurance / 760 is correct Row 9 : Repairs / 2800 is correct Row 10 : Place holder - Earnings before income taxes / autocalculated to 12,340 is wrong, Row 11 : Income tax expense / 4036 is wrong Row 12 : Net earnings / 7404 is wrong.

Peter's Curling Inc. operates several curling centres (for games and equipment sales). The following transactions occurred in the month of October. (a) Peter's collected $15,400 from customers for games played in October. (b) Peter's sold $10,400 in curling equipment inventory, received $6,600 in cash and the rest on account: cost of sales is $6,400. (c) Peter's received $4,600 from customers on account who purchased merchandise in September. (d) The curling league gave Peter's a deposit of $5,100 for the upcoming fall season. (e) Peter's paid $5,600 for the September electricity bill and received the October bill for $6,160 to be paid in November. (1) Peter's paid $7,600 to employees for work in October (9) Peter's purchased $2,280 in insurance for coverage from October 1 to December 31. (h) Peter's paid $2,800 to plumbers for repairing a broken pipe in the washrooms. Prepare a statement of earnings for Peter's Curling Inc. for the month of October 2017. Use an income tax rate of 40 percent. Answer is complete but not entirely correct. PETER'S CURLING INC. Statement of Earnings For the Month of October 2017 $ Revenue Insurance Gross profit Expenses: Cost of sales 35,500 1,520 % 35,500 Utilities Salaries OOO 6,400 X 5,600 7,600 760 2,800 Insurance Repairs Earnings before income taxes Income tax expense Net earnings 23,160 12,340 4,936 7,404 % $