E3-8 (Algo) Preparing a Statement of Earnings LO3-4, 3-5 Peter's Curling Inc. operates several curling centres for games and equipment sales. The following transactions occurred in October of the current year: a. Peter's collected $14,350 from customers for games played in October. b. Peter's sold curling equipment inventory for $9,350; received $5,900 in cash and the rest on account; the cost of sales is $5,700. c. Peter's received $3,900 from customers on account who purchased merchandise in September. d. The curling league gave Peter's a deposit of $4,400 for the upcoming fall season. e. Peter's paid $4,900 for the September electricity bill and received the October bill for $5,390, which will be paid in November. f. Peter's paid $6,900 to employees for work in October. g. Peter's purchased and paid $2,070 in insurance for coverage from October 1 to December 31. h. Peter's paid $2,450 to plumbers for repairing a broken pipe in the washrooms. Required: Prepare a statement of earnings for Peter's Curling Inc. for the month of October of the current year. Use an income tax rate of 30 percent. PETER'S CURLING INC. Statement of Earnings For the Month of October, Current Year Operating expenses: Earnings before income taxes 0 0
E3-8 (Algo) Preparing a Statement of Earnings LO3-4, 3-5 Peter's Curling Inc. operates several curling centres for games and equipment sales. The following transactions occurred in October of the current year: a. Peter's collected $14,350 from customers for games played in October. b. Peter's sold curling equipment inventory for $9,350; received $5,900 in cash and the rest on account; the cost of sales is $5,700. c. Peter's received $3,900 from customers on account who purchased merchandise in September. d. The curling league gave Peter's a deposit of $4,400 for the upcoming fall season. e. Peter's paid $4,900 for the September electricity bill and received the October bill for $5,390, which will be paid in November. f. Peter's paid $6,900 to employees for work in October. g. Peter's purchased and paid $2,070 in insurance for coverage from October 1 to December 31. h. Peter's paid $2,450 to plumbers for repairing a broken pipe in the washrooms. Required: Prepare a statement of earnings for Peter's Curling Inc. for the month of October of the current year. Use an income tax rate of 30 percent. PETER'S CURLING INC. Statement of Earnings For the Month of October, Current Year Operating expenses: Earnings before income taxes 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:E3-8 (Algo) Preparing a Statement of Earnings LO3-4, 3-5
Peter's Curling Inc. operates several curling centres for games and equipment sales. The following transactions occurred
in October of the current year:
a. Peter's collected $14,350 from customers for games played in October.
b. Peter's sold curling equipment inventory for $9,350; received $5,900 in cash and the rest on account; the cost of
sales is $5,700.
c. Peter's received $3,900 from customers on account who purchased merchandise in September.
d. The curling league gave Peter's a deposit of $4,400 for the upcoming fall season.
e. Peter's paid $4,900 for the September electricity bill and received the October bill for $5,390, which will be paid in
November.
f. Peter's paid $6,900 to employees for work in October.
g. Peter's purchased and paid $2,070 in insurance for coverage from October 1 to December 31.
h. Peter's paid $2,450 to plumbers for repairing a broken pipe in the washrooms.
Required:
Prepare a statement of earnings for Peter's Curling Inc. for the month of October of the current year. Use an income tax
rate of 30 percent.
PETER'S CURLING INC.
Statement of Earnings
For the Month of October, Current Year
Operating expenses:
Earnings before income taxes
0
0
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