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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

 

 

Wages paid

30,000

 

 

Question)   Prepare an Income Statement to calculate the net profit. 

Income Statement

 

 

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