Revenues Income Statement For the Year Ended January 31, 2025 (1) Cash Basis $ (2) Accrual Basis

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Revenues
Expenses
Rent
Salaries and Wages
Other Operating Expenses
Cost of Computers & Printers
Total Expenses
Net Income/(Loss)
Income Statement
For the Year Ended January 31, 2025
$
(1) Cash Basis
9,000
$
(2) Accrual Basis
3,000
Transcribed Image Text:Revenues Expenses Rent Salaries and Wages Other Operating Expenses Cost of Computers & Printers Total Expenses Net Income/(Loss) Income Statement For the Year Ended January 31, 2025 $ (1) Cash Basis 9,000 $ (2) Accrual Basis 3,000
On January 1, 2025, Norma Smith and Grant Wood formed a computer sales and service company in Soapsville, Arkansas, by investing
$91,772 cash. The new company, Blossom Sales and Service, has the following transactions during January.
1.
2.
3.
4.
5.
Pays $9,000 in advance for 3 months' rent of office, showroom, and repair space.
Purchases 43 personal computers at a cost of $1,688 each, 9 graphics computers at a cost of $2,688 each, and 28 printers at a
cost of $488 each, paying cash upon delivery.
Sales, repair, and office employees earn $14,372 in salaries and wages during January, of which $4,772 was still payable at the
end of January.
Sells 33 personal computers at $2,738 each, 7 graphics computers for $3,788 each, and 18 printers for $688 each; $76,772 is
received in cash in January, and $52,482 is sold on a deferred payment basis.
Other operating expenses of $10,172 are incurred and paid for during January; $3,772 of incurred expenses are payable at
January 31.
Transcribed Image Text:On January 1, 2025, Norma Smith and Grant Wood formed a computer sales and service company in Soapsville, Arkansas, by investing $91,772 cash. The new company, Blossom Sales and Service, has the following transactions during January. 1. 2. 3. 4. 5. Pays $9,000 in advance for 3 months' rent of office, showroom, and repair space. Purchases 43 personal computers at a cost of $1,688 each, 9 graphics computers at a cost of $2,688 each, and 28 printers at a cost of $488 each, paying cash upon delivery. Sales, repair, and office employees earn $14,372 in salaries and wages during January, of which $4,772 was still payable at the end of January. Sells 33 personal computers at $2,738 each, 7 graphics computers for $3,788 each, and 18 printers for $688 each; $76,772 is received in cash in January, and $52,482 is sold on a deferred payment basis. Other operating expenses of $10,172 are incurred and paid for during January; $3,772 of incurred expenses are payable at January 31.
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