The following data are obtained from a single entry set of books kept by PKC proprietor of
Question:
The following data are obtained from a single entry set of books kept by PKC proprietor of retail store:
January 1 June 30
Cash $ 390 $ 4,110
Notes receivable 2,000 1,200
Accounts Receivable 4,500 8,800
Accrued interest on N/R 120 100
Merchandise inventories 3,800 1,000
Prepaid Operating expense 250 200
Store equipment 3,250 3,000
Notes Payable 1,000 1,200
Accounts Payable 3,500 2,500
Accrued interest on N/P 40 50
Accrued operating expense 270 300
The cash book shows the following information:
Balance January 1 $ 1,500
Receipts: Accounts receivable $ 4,850
Notes Receivable 1,500
Interest income 150 6,500
8,000
Payments: Accounts payable $ 5,250
Notes payable 800
Interest expense 155
Operating expenses 1,650
Withdrawals 600 8,455
Balance, March 31 ($ 455)
Required:
Calculate net income or loss for the six-month for the period by considering change in capital.
Compute sales to prepare the income statement.
Probability & Statistics for Engineers & Scientists
ISBN: 978-0130415295
7th Edition
Authors: Ronald E. Walpole, Raymond H. Myers, Sharon L. Myers, Keying