Pharoah Electronics Ltd. operates an online electronics business selling hardware and software. Customers confirm the goods ordered and pay for their purchase before Pharoah ships the merchandise they have ordered. The company also provides IT consulting services to larger customers. Customers who require consulting services sign a contract and are required to pay a 20% deposit at the time of signing. The remaining 80% is due on delivery of the final consulting report. During 2024, the online business collected $6,524,000 from hardware and software sales. At year end, August 31, 2024, the company had collected $954,000 cash for IT consulting services which included $282,000 for services scheduled to be completed by December 31, 2024. Pharoah paid $2,137,000 for the hardware and software inventory sold during the year and $1,444,000 for wages to technical and warehouse staff. The company owed $58,000 in wages to its staff at year end, which will be paid on September 11, 2024, as part of the normal weekly pay schedule. Prepare as much of the single-step statement of income for Pharoah Electronics Ltd. as you can, presenting the amount of sales revenue for each revenue stream and any other amounts that should be included.
Pharoah Electronics Ltd. operates an online electronics business selling hardware and software. Customers confirm the goods ordered and pay for their purchase before Pharoah ships the merchandise they have ordered. The company also provides IT consulting services to larger customers. Customers who require consulting services sign a contract and are required to pay a 20% deposit at the time of signing. The remaining 80% is due on delivery of the final consulting report. During 2024, the online business collected $6,524,000 from hardware and software sales. At year end, August 31, 2024, the company had collected $954,000 cash for IT consulting services which included $282,000 for services scheduled to be completed by December 31, 2024. Pharoah paid $2,137,000 for the hardware and software inventory sold during the year and $1,444,000 for wages to technical and warehouse staff. The company owed $58,000 in wages to its staff at year end, which will be paid on September 11, 2024, as part of the normal weekly pay schedule. Prepare as much of the single-step statement of income for Pharoah Electronics Ltd. as you can, presenting the amount of sales revenue for each revenue stream and any other amounts that should be included.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Pharoah Electronics Ltd.
Statement of Income
$
+A
Transcribed Image Text:Pharoah Electronics Ltd. operates an online electronics business selling hardware and software. Customers confirm the goods ordered
and pay for their purchase before Pharoah ships the merchandise they have ordered. The company also provides IT consulting services
to larger customers. Customers who require consulting services sign a contract and are required to pay a 20% deposit at the time of
signing. The remaining 80% is due on delivery of the final consulting report.
During 2024, the online business collected $6,524,000 from hardware and software sales. At year end, August 31, 2024, the company
had collected $954,000 cash for IT consulting services which included $282,000 for services scheduled to be completed by December
31, 2024. Pharoah paid $2,137,000 for the hardware and software inventory sold during the year and $1,444,000 for wages to
technical and warehouse staff. The company owed $58,000 in wages to its staff at year end, which will be paid on September 11, 2024,
as part of the normal weekly pay schedule.
Prepare as much of the single-step statement of income for Pharoah Electronics Ltd. as you can, presenting the amount of sales
revenue for each revenue stream and any other amounts that should be included.
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