Chapter 3, Problem 42E

Exercise 3-42 Revenue and Expense Recognition

Omega Transportation Inc., headquartered in Atlanta, Georgia, uses accrual-basis accounting and engaged in the following transactions:

• billed customers $3,580,000 for transportation services

• collected cash from customers in the amount of $2,479,000

• purchased fuel supplies for $1,655.000 cash

• used fuel supplies that cost $1,598,240

• employees earned salaries of $425,160

• paid employees $413,380 cash for salaries

Required:

Determine the amount of sales revenue and total expenses for Omega’s income statement.