he following is a summary of transactions for January 20xx, gathered by the Sample Cafe bookkeeper and Use the preceding transaction information to create a Cash-Based Income Statement for January using the following template.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following is a summary of transactions for January 20xx, gathered by the Sample Cafe bookkeeper and Use the preceding transaction information to create a Cash-Based Income Statement for January using the following template.

Item
Notes
8,700 medium cups of coffee sold at
$3.00 each
Includes 600 medium cups medium cups sold to the college and delivered to a reception that has been
invoiced, but not yet paid.
3,900 large cups of coffee sold at $4.00
each
Espresso maker purchased last year for
$12,600
5-year life
$600 premium for business insurance
Premium for full year
$3,300 for rent
Includes $2,100 in rent deposits.
$2,500 for coffee beans
Includes coffee discarded valued at $100
$1,600 for coffee cups
O cups in inventory at the beginning of January. $700 worth of cups still in inventory at the end of month.
$15,300 to employees for payroll
$2,200 owed in payroll taxes
$200 of interest on loan
Paid mid-month
$1,000 for electricity and water
Includes $500 in utility deposits
$10,800 in advertising
$2,700 per week billed monthly
Use the preceding transaction information to create a Cash-Based Income Statement for January using the following template.
Account
Balance
Revenues
$ 0
Expenses
Coffee and Cups
$ 0
Salaries and Wages
$ 0
Rent and Utilities
$ 0
Advertising
$ 0
Insurance
$ 0
Equipment
$ 0
Interest
$ 0
Other Expenses
$ 0
Total Expenses
$ 0
Net Income
$ 0
O O O O O O O O
Transcribed Image Text:Item Notes 8,700 medium cups of coffee sold at $3.00 each Includes 600 medium cups medium cups sold to the college and delivered to a reception that has been invoiced, but not yet paid. 3,900 large cups of coffee sold at $4.00 each Espresso maker purchased last year for $12,600 5-year life $600 premium for business insurance Premium for full year $3,300 for rent Includes $2,100 in rent deposits. $2,500 for coffee beans Includes coffee discarded valued at $100 $1,600 for coffee cups O cups in inventory at the beginning of January. $700 worth of cups still in inventory at the end of month. $15,300 to employees for payroll $2,200 owed in payroll taxes $200 of interest on loan Paid mid-month $1,000 for electricity and water Includes $500 in utility deposits $10,800 in advertising $2,700 per week billed monthly Use the preceding transaction information to create a Cash-Based Income Statement for January using the following template. Account Balance Revenues $ 0 Expenses Coffee and Cups $ 0 Salaries and Wages $ 0 Rent and Utilities $ 0 Advertising $ 0 Insurance $ 0 Equipment $ 0 Interest $ 0 Other Expenses $ 0 Total Expenses $ 0 Net Income $ 0 O O O O O O O O
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For your convenience, the summary of transactions from the previous question is duplicated below.
Sample Cafe Transactions
Item
8,100 medium cups of coffee
sold at $3.00 each
4,400 large cups of coffee sold
at $4.00 each
Espresso maker purchased last
year for $12,000
$480 premium for business
insurance
$3,700 for rent
$2,200 for coffee beans
$1,600 for coffee cups
$15,700 to employees for
payroll
$100 of interest on loan
$1,000 for electricity and water
$11,600 in advertising
Includes 500 medium cups medium cups sold to the college and delivered
to a reception that has been invoiced, but not yet paid.
5-year life
Premium for full year
Includes $2,100 in rent deposits.
Includes coffee discarded valued at $100
Notes
0 cups in inventory at the beginning of January. $800 worth of cups still in
inventory at the end of month.
$2,500 owed in payroll taxes
Paid mid-month
Includes $600 in utility deposits
$2,900 per week billed monthly
Now use the transaction information to create a Accrual-Based Income Statement for January using
the following template.
Transcribed Image Text:For your convenience, the summary of transactions from the previous question is duplicated below. Sample Cafe Transactions Item 8,100 medium cups of coffee sold at $3.00 each 4,400 large cups of coffee sold at $4.00 each Espresso maker purchased last year for $12,000 $480 premium for business insurance $3,700 for rent $2,200 for coffee beans $1,600 for coffee cups $15,700 to employees for payroll $100 of interest on loan $1,000 for electricity and water $11,600 in advertising Includes 500 medium cups medium cups sold to the college and delivered to a reception that has been invoiced, but not yet paid. 5-year life Premium for full year Includes $2,100 in rent deposits. Includes coffee discarded valued at $100 Notes 0 cups in inventory at the beginning of January. $800 worth of cups still in inventory at the end of month. $2,500 owed in payroll taxes Paid mid-month Includes $600 in utility deposits $2,900 per week billed monthly Now use the transaction information to create a Accrual-Based Income Statement for January using the following template.
Account
Revenues
Cost of Goods Sold
Gross Margin, or Gross Profit
Expenses
Salaries and Wages
Rent and Utilities
Advertising
Insurance
Equipment Depreciation
Interest
Total Expenses
Net Income
$0
$0
$0
GA
GA
0
0
GA
O
0
$0
$0
0
$0
Balance
Transcribed Image Text:Account Revenues Cost of Goods Sold Gross Margin, or Gross Profit Expenses Salaries and Wages Rent and Utilities Advertising Insurance Equipment Depreciation Interest Total Expenses Net Income $0 $0 $0 GA GA 0 0 GA O 0 $0 $0 0 $0 Balance
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