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.

  • CreatedAugust 04, 2015
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