Lydia Cravette operates a florist shop called Scents Unlimited Ltd. During the month of May, the following
Question:
Lydia Cravette operates a florist shop called Scents Unlimited Ltd. During the month of May, the following things occurred:
1. She spent $160 on the telephone system, $370 on utilities, and $1,500 on rent.
2. She took in $24,730 from selling flowers and plants. All of the shop’s sales were cash sales.
3. She spent $10,733 on flowers from a local grower, she paid $329 for gas and repairs to the delivery vehicle, and she paid her employees $7,000 for wages earned during the month.
Required:
a. Prepare a statement of income to determine how much Scents Unlimited Ltd. earned in May.
b. Are there any other costs that might have been incurred in May but are not listed?
Step by Step Answer:
Understanding Financial Accounting
ISBN: 978-1118849385
1st Canadian Edition
Authors: Christopher Burnley, Robert Hoskin, Maureen Fizzell, Donald