Jan Wei owns a cycle store that sells equipment, clothing, and other accessories. During the month of June, the following activities occurred:
1. The business earned $30,000 from the sale of bicycles, clothing, and accessories. Half the sales were for cash and the other half was paid for with credit cards. The money for the credit card sales, less a 3% charge, was collected from the credit card company.
2. The merchandise that was sold originally cost $17,400.
3. Jan purchased additional merchandise on credit for $20,800.
4. Jan paid $18,000 to the suppliers of the merchandise purchased above.
5. The telephone, electricity, and water bills for the month came to $430. All but one of these bills, for $130, was paid by the end of the month.
6. Other expenses for the month totalled $2,100. They were all paid in cash, except the depreciation expense, which was $600.
7. At the end of May, Jan had an 8% loan for $5,000 outstanding with the bank. On the last day of June, Jan paid the monthly interest that was owed on the loan, and also paid $500 on the loan principal.
8. On the last day of June, a customer ordered a $1,300 bicycle. Jan did not have it in stock, so it was ordered and will be delivered in July. Since it was a special order, the customer paid a $300 deposit on it.
Required:
With reference to the concepts discussed so far in the book, determine the amounts that would properly be reported in the June statement of earnings for Jan's shop, and calculate the net earnings for the month. If an item is excluded, explain why.