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- use the following information and prepare an income statement to...
Question: use the following information and prepare an income statement to...
Question details
Use the following information and prepare an Income Statement (to calculate the net profit).
|
Bank balance beginning of month |
15,600 |
Inventory purchased for cash |
28,000 |
|
Bank balance, end of month |
19,800 |
Miscellaneous expenses paid |
8,000 |
|
Cash drawings |
30,000 |
Payment on accounts payable |
44,000 |
|
Cash sales |
72,000 |
Proceeds from bank loan |
93,000 |
|
Collections from accounts receivable |
40,000 |
Proceeds from sale of motor vehicle |
12,000 |
|
Cost of sales |
69,000 |
Purchase of motor vehicle for cash |
68,000 |
|
Credit sales |
58,000 |
Rent expense |
800 |
|
Depreciation |
3,500 |
Rent paid in advance for the next 6 months |
4,800 |
|
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|
Wages paid |
30,000 |
Question) Prepare an Income Statement to calculate the net profit.
Income Statement
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Solution by an expert tutor
