Revenue and Expense Recognition Aunt Bea's Catering Service provides catering service for special occasions. During 2013, Aunt Bea performed $228,500 of catering services and collected $218,200 of cash from customers. Salaries earned by Aunt Bea's employees during 2013 were $49,900. Aunt Bea paid employees $45,100 during 2013. Aunt Bea had $1,200 of supplies on hand at the beginning of the year and purchased an additional $12,640 of supplies during the year. Supplies on hand at the end of 2013 were $2,820. Other selling and administrative expenses incurred during 2013 were $10,800. Required: 1. Calculate revenue for 2013.$ Calculate expenses for 2013.$ Hide 2. Prepare the 2013 income statement. Aunt Bea's Catering Service Income Statement For the Year Ended December 31, 2013 $ Expenses: $ $ 3. Conceptual Connection: Describe the accounting principles used to prepare the income statement. The input in the box below will not be automatically graded, but may be reviewed and considered by your instructor.
Revenue and Expense Recognition
Aunt Bea's Catering Service provides catering service for special occasions. During 2013, Aunt Bea performed $228,500 of catering services and collected $218,200 of cash from customers. Salaries earned by Aunt Bea's employees during 2013 were $49,900. Aunt Bea paid employees $45,100 during 2013. Aunt Bea had $1,200 of supplies on hand at the beginning of the year and purchased an additional $12,640 of supplies during the year. Supplies on hand at the end of 2013 were $2,820. Other selling and administrative expenses incurred during 2013 were $10,800.
Required:
1. Calculate revenue for 2013.
$
Calculate expenses for 2013.
$
2. Prepare the 2013 income statement.
|
3. Conceptual Connection: Describe the accounting principles used to prepare the income statement.
The input in the box below will not be automatically graded, but may be reviewed and considered by your instructor.
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