Homework Help is Here – Start Your Trial Now!
Business
Accounting
Complete the following income statement

Complete the following income statement

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Complete the following income statement 

INCOME STATEMENT $ 2$ Sales Revenue 1,803,234 Cost of Good Sold 46,435 Gross Profit 1,849,669 Other Operating Revenue: Interest Revenue 5,362 Operating Expenses Selling, General & Administrative Expenses: Net Operating Profit 1,855,031 Non-Operating Income and Expenses Net Profit (Loss) Before Tax 1,855,031
Transcribed Image Text:INCOME STATEMENT $ 2$ Sales Revenue 1,803,234 Cost of Good Sold 46,435 Gross Profit 1,849,669 Other Operating Revenue: Interest Revenue 5,362 Operating Expenses Selling, General & Administrative Expenses: Net Operating Profit 1,855,031 Non-Operating Income and Expenses Net Profit (Loss) Before Tax 1,855,031
Adjusted Trial Balance The General Journal "For the Month Ending 31/8/2021" Date Accounts Dr Cr Depreciation Expense - Motor Vehicle Accum. Depreciation - Motor Vehicle Cr 31/08/2021 Acc. No. Account Dr 700 201 Accounts Payable Accounts receivable 159 Accum. Depreciation - Motor Vehicle Accum. Depreciation Office Furniture Advertising Expense Bank Loan Capital Cash Computer Expense Consulting Expense 244 Consulting Fees Payable 6,330 700 102 27,218 Wage Expense Wages Payable 17,500 31/08/2021 7,350 156 6,240 6,027 610 4,250 PAYG Withheld 1,323 251 33,990 301 182,930 31/08/2021 Unearned Revenue 28,380 101 176,234 Sales Revenue 25,542 601 896 GST Collected 2,838 604 6,088 Interest Receivable Interest Revenue 31/08/2021 128 3,044 128 501 Cost of Good Sold 46,435 Depreciation Expense - Motor Vehicle Depreciation Expense - Office Furniture Drawings 651 700 31/08/2021 Rent Expense 1,820 655 4B0 Prepaid Rent 1,820 302 4,780 222 GST Collected 21,216 31/08/2021 Office Supplies Expense 40 111 GST Paid 9,281 Office Supplies 40 Insurance Expense Interest Due Interest Expense Interest Receivable Interest Revenue 605 990 240 2,806 Depreciation Expense - Office Furniture Accum. Depreciation - Office Furniture 31/08/2021 480 603 2,806 480 143 5,362 403 5,362 31/08/2021 Wage Expense Wages Payable PAYG Withheld B,680 103 Inventory Motor Vehicle Office Furniture 42,198 84,000 23,040 7,812 158 BGR 155 Office Supplies Office Supplies Expense PAYG Withheld 104 16,792 31/08/2021 Insurance Expense 990 602 40 Prepaid Insurance 990 261 6,781 141 Prepaid Insurance Prepaid Rent Rent Expense Sales Commission Expense Sales Revenue Service Revenue Unearned Revenue 7,920 142 14,560 606 1,820 607 4,643 401 1,803,234 28,998 402 241 7,740 608 6.100 Utilities Expense Utilities Payable 243 2,033 Wage Expense Wages Payable 609 34,330 242 15,669 TOTAL 520,963 2,143,873 TOTAL 48,568 48,568 Relevant information: 1. Adjusting Items: Date Description Description 31/8/21 The motor vehicle is depreciated using the straight line method. It has a useful life of 10 years and a zero residual value. The business has 7 sales staff. Each sales staff member's GROSS wage is $2100 per fortnight [PAYG withheld of $378]. At the end of the month, the business owed its sales staff 1 week worth of wages and that is yet to be recorded. 31/8/21 Received $28380 (including GST) from a customer at the start of August 2021 for provision of some advanced cleaning services. At the time, the amount was recorded as uneamed revenue and GST collected. The business managed to deliver these services by the end 31/8/21 of August 2021. On August 1, 2021 the business deposited $19200 into a fixed deposit at ABC Bank. The interest offered was at 8% per annum and paid quarterly. The interest on the $19200 fixed deposit acrrued by the end of the month is yet to be recorded. 31/8/21 On August 1, 2021 the business paid $18018 (including GST) for 9 months of office rent. This was recorded at the time as Prepaid Rent and GST Paid. 31/8/21 On August 11, 2021 the business purchased 15 packs of markers worth $660 (including GST) which were recorded as Office Supplies and GST Paid. Heracles counted the markers at the end of August 2021 and found that 1 packs of these markers have been consumed but their consumption has not been recorded. 31/8/21 The office furniture is depreciated using the straight line method. It depreciates at 25% per annum and is assumed to have a zero 31/8/21 residual value. The business hires 5 general office assistants. Each assistant is paid a NET wages of $748 per week (PAYG withheld of $120J. At the 31/8/21 end of the month, the business owed its office assistants 2 weeks of wages and that is yet to be recorded. On August 1, 2021 the business paid $9801 (including GST) for 9 months of business insurance. This was recorded at the time as Prepaid Insurance and GST Paid. 31/8/21
Transcribed Image Text:Adjusted Trial Balance The General Journal "For the Month Ending 31/8/2021" Date Accounts Dr Cr Depreciation Expense - Motor Vehicle Accum. Depreciation - Motor Vehicle Cr 31/08/2021 Acc. No. Account Dr 700 201 Accounts Payable Accounts receivable 159 Accum. Depreciation - Motor Vehicle Accum. Depreciation Office Furniture Advertising Expense Bank Loan Capital Cash Computer Expense Consulting Expense 244 Consulting Fees Payable 6,330 700 102 27,218 Wage Expense Wages Payable 17,500 31/08/2021 7,350 156 6,240 6,027 610 4,250 PAYG Withheld 1,323 251 33,990 301 182,930 31/08/2021 Unearned Revenue 28,380 101 176,234 Sales Revenue 25,542 601 896 GST Collected 2,838 604 6,088 Interest Receivable Interest Revenue 31/08/2021 128 3,044 128 501 Cost of Good Sold 46,435 Depreciation Expense - Motor Vehicle Depreciation Expense - Office Furniture Drawings 651 700 31/08/2021 Rent Expense 1,820 655 4B0 Prepaid Rent 1,820 302 4,780 222 GST Collected 21,216 31/08/2021 Office Supplies Expense 40 111 GST Paid 9,281 Office Supplies 40 Insurance Expense Interest Due Interest Expense Interest Receivable Interest Revenue 605 990 240 2,806 Depreciation Expense - Office Furniture Accum. Depreciation - Office Furniture 31/08/2021 480 603 2,806 480 143 5,362 403 5,362 31/08/2021 Wage Expense Wages Payable PAYG Withheld B,680 103 Inventory Motor Vehicle Office Furniture 42,198 84,000 23,040 7,812 158 BGR 155 Office Supplies Office Supplies Expense PAYG Withheld 104 16,792 31/08/2021 Insurance Expense 990 602 40 Prepaid Insurance 990 261 6,781 141 Prepaid Insurance Prepaid Rent Rent Expense Sales Commission Expense Sales Revenue Service Revenue Unearned Revenue 7,920 142 14,560 606 1,820 607 4,643 401 1,803,234 28,998 402 241 7,740 608 6.100 Utilities Expense Utilities Payable 243 2,033 Wage Expense Wages Payable 609 34,330 242 15,669 TOTAL 520,963 2,143,873 TOTAL 48,568 48,568 Relevant information: 1. Adjusting Items: Date Description Description 31/8/21 The motor vehicle is depreciated using the straight line method. It has a useful life of 10 years and a zero residual value. The business has 7 sales staff. Each sales staff member's GROSS wage is $2100 per fortnight [PAYG withheld of $378]. At the end of the month, the business owed its sales staff 1 week worth of wages and that is yet to be recorded. 31/8/21 Received $28380 (including GST) from a customer at the start of August 2021 for provision of some advanced cleaning services. At the time, the amount was recorded as uneamed revenue and GST collected. The business managed to deliver these services by the end 31/8/21 of August 2021. On August 1, 2021 the business deposited $19200 into a fixed deposit at ABC Bank. The interest offered was at 8% per annum and paid quarterly. The interest on the $19200 fixed deposit acrrued by the end of the month is yet to be recorded. 31/8/21 On August 1, 2021 the business paid $18018 (including GST) for 9 months of office rent. This was recorded at the time as Prepaid Rent and GST Paid. 31/8/21 On August 11, 2021 the business purchased 15 packs of markers worth $660 (including GST) which were recorded as Office Supplies and GST Paid. Heracles counted the markers at the end of August 2021 and found that 1 packs of these markers have been consumed but their consumption has not been recorded. 31/8/21 The office furniture is depreciated using the straight line method. It depreciates at 25% per annum and is assumed to have a zero 31/8/21 residual value. The business hires 5 general office assistants. Each assistant is paid a NET wages of $748 per week (PAYG withheld of $120J. At the 31/8/21 end of the month, the business owed its office assistants 2 weeks of wages and that is yet to be recorded. On August 1, 2021 the business paid $9801 (including GST) for 9 months of business insurance. This was recorded at the time as Prepaid Insurance and GST Paid. 31/8/21
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Financial Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS