Aunt Beas Catering Service provides catering service for special occasions. During 2009, Aunt Bea performed $125,000 of
Question:
Aunt Bea’s Catering Service provides catering service for special occasions. During 2009, Aunt Bea performed $125,000 of catering services and collected $118,500 of cash from customers. Salaries earned by Aunt Bea’s employees during 2009 were $38,500. Aunt Bea paid employees $35,000 during 2009. Aunt Bea had $1,200 of supplies on hand at the beginning of the year and purchased an additional $8,000 of supplies during the year. Supplies on hand at the end of 2009 were $1,800. Other selling and administrative expenses incurred during 2009 were $5,800.
Required:
1. Calculate revenue for 2009.
2. Calculate expenses for 2009.
3. Prepare the 2009 income statement.
4. Describe the accounting principles used to prepare the income statement.
Step by Step Answer:
Cornerstones of Financial and Managerial Accounting
ISBN: 978-0324787351
1st Edition
Authors: Rich Jones, Mowen, Hansen, Heitger