Question: Assume that you are the owner of The University Shop

Assume that you are the owner of The University Shop, which specializes in items that interest students. At the end of September 2015, you find (for September only) the following:
a. Sales, per the cash register tapes, of $ 119,000, plus one sale on credit (a special situation) of $ 1,000.
b. With the help of a friend (who majored in accounting), you determined that all of the goods sold during September had cost $ 40,000 to purchase.
c. During the month, according to the cheque book, you paid $ 38,000 for salaries, rent, supplies, advertising, and other expenses; however, you have not yet paid the $ 600 monthly utilities for September.
On the basis of the data given, what was the amount of net earnings for September (disregard income taxes)? Show computations.

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  • CreatedAugust 04, 2015
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