question archive Lydia Cravette operates a florist shop called Scents Unlimited Ltd
Lydia Cravette operates a florist shop called Scents Unlimited Ltd
Subject:AccountingPrice:3.87 Bought7
Lydia Cravette operates a florist shop called Scents Unlimited Ltd. During the month of May, the following things occurred:
1. She spent $200on the telephone system,$450on utilities, and$1.900on rent.
2. She took in$29,000from selling flowers and plants. All of the shop's sales were cash sales.
3. She spent$10,200for the cost of the flowers sold, she paid $270 for gas and repairs to the delivery vehicle (use Operating Expenses account), andξthe paid her employees$7,300for wages earned during the month.
Prepare astatement of income to determine how much Scents Unlimited Ltd, earned in May.
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Answer:
Statement of income
For the month of May
| Sales | $29,000 | |
| Cost of flowers sold | ($10,200) | |
| Gross profit | $18,800 | |
| Less: Operating expenses | ||
| Repairs | $270 | |
| Wages | $7,300 | |
| Telephone | $200 | |
| Utilities | $450 | |
| Rent | $1,900 | |
| Total Expenses | $10,120 | |
| Net income | $8,680 |
