Kelly is a trader. Her financial year ends on 31st March. The balances remaining on her books on 31st March 2017 after calculating gross profit for the year included the following: $ Gross profit 39 100 Capital 50 000 Drawings 2 340 Wages 18 650 Office expenses 4 470 Motor expenses 1 570 Discount allowed 250 Rent 9 600 Insurance 2 400 Carriage outwards 1 160 Advertising cost 3 110 Discount received 3 000 Prepare Kelly’s Income statement starting with gross profit and calculate the profit or loss for the year ended 31st March 2017.

Kelly is a trader. Her financial year ends on 31st March. The balances remaining on her books on 31st March 2017 after calculating gross profit for the year included the following: $ Gross profit 39 100 Capital 50 000 Drawings 2 340 Wages 18 650 Office expenses 4 470 Motor expenses 1 570 Discount allowed 250 Rent 9 600 Insurance 2 400 Carriage outwards 1 160 Advertising cost 3 110 Discount received 3 000 Prepare Kelly’s Income statement starting with gross profit and calculate the profit or loss for the year ended 31st March 2017.

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 33P

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Question

Kelly is a trader. Her financial year ends on 31^st March. The balances remaining on her books on 31^st March 2017 after calculating gross profit for the year included the following:

	$
Gross profit	39 100
Capital	50 000
Drawings	2 340
Wages	18 650
Office expenses	4 470
Motor expenses	1 570
Discount allowed	250
Rent	9 600
Insurance	2 400
Carriage outwards	1 160
Advertising cost	3 110
Discount received	3 000

Prepare Kelly’s Income statement starting with gross profit and calculate the profit or loss for the year ended 31^st March 2017.

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