Question
QUESTION 1 The following is a summary of transactions for January 20xx, gathered by the Sample Cafe bookkeeper. Sample Cafe Transactions Item Notes 7,500 medium
QUESTION 1
The following is a summary of transactions for January 20xx, gathered by the Sample Cafe bookkeeper.
Sample Cafe Transactions
Item | Notes |
---|---|
7,500 medium cups of coffee sold at $3.00 each | Includes 400 medium cups medium cups sold to the college and delivered to a reception that has been invoiced, but not yet paid. |
3,700 large cups of coffee sold at $4.00 each | |
Espresso maker purchased last year for $12,000 | 5-year life |
$600 premium for business insurance | Premium for full year |
$3,400 for rent | Includes $2,000 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. |
$16,100 to employees for payroll | $2,200 owed in payroll taxes |
$300 of interest on loan | Paid mid-month |
$1,100 for electricity and water | Includes $400 in utility deposits |
$11,600 in advertising | $2,900 per week billed monthly |
Use the preceding transaction information to create a Cash-Based Income Statement for 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 | $ |
QUESTION 2
For your convenience, the summary of transactions from the previous question is duplicated below.
Sample Cafe Transactions
Item | Notes |
---|---|
7,500 medium cups of coffee sold at $3.00 each | Includes 400 medium cups medium cups sold to the college and delivered to a reception that has been invoiced, but not yet paid. |
3,700 large cups of coffee sold at $4.00 each | |
Espresso maker purchased last year for $12,000 | 5-year life |
$600 premium for business insurance | Premium for full year |
$3,400 for rent | Includes $2,000 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. |
$16,100 to employees for payroll | $2,200 owed in payroll taxes |
$300 of interest on loan | Paid mid-month |
$1,100 for electricity and water | Includes $400 in utility deposits |
$11,600 in advertising | $2,900 per week billed monthly |
Now use the transaction information to create a Accrual-Based Income Statement for January using the following template.
Account | Balance |
---|---|
Revenues | $ |
Cost of Goods Sold | $ |
Gross Margin, or Gross Profit | $ |
Expenses | |
Salaries and Wages | $ |
Rent and Utilities | $ |
Advertising | $ |
Insurance | $ |
Equipment Depreciation | $ |
Interest | $ |
Total Expenses | $ |
Net Income | $ |
Use the Accrual-Based Income Statement you created above to answer the following questions.
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