Make an income statement based on the following transactions for September for GameCenter, a company that sells
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Question:
Make an income statement based on the following transactions for September for GameCenter, a company that sells board games. GameCenter records adjusting entries at the end of each month. (Include 'Gross Profit' subtotal and clearly identify 'Net Income/Loss')
- In September GameCenter sold $13,664 of games and the cost of these games totaled $6,000. All sales were paid with cash.
- GameCenter paid $1,000 of rent for September and prepaid $1,000 of Octobers rent
- GameCenter sold $500 of gift cards in September. At the end of September none of the gift cards had been redeemed. The customers paid with cash for the gift cards.
- Employee wages for September totaled $2,010; these will be paid during the first week of October
What is the total net income that GameCenter will report on its income statement for September?
Related Book For
Financial Accounting
ISBN: 978-1259307959
4th edition
Authors: David Spiceland, Wayne Thomas, Don Herrmann
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