Create an April income statement for Costco based on the transactions that happened in April. Assume adjusting entries are done at the end of every month. Show your work for partial credit. In April, Costco prepays for rent on its Seattle store for May for $5,000. Costco receives $12,000 from a customers on April 1st for a 12-month membership starting on April 1st. In April, Costco sold 6,000 slices of pizza to customers for $3 each. The customers all paid with cash. The cost of the pizza inventory was $1 per slice. Costco incurred $10,000 of wage cost for April. Of this, $9,000 was paid in April and the remaining will be paid in May. On April 1st, Costco took out a $100,000, 5-year loan with an interest rate of 3%. Interest and principal will be repaid at maturity in 5 years. 

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To create an income statement for Costco based on the transactions in April we need to calculate the revenues expenses and net income for the month He... View the full answer