Create an income statement showing how you found the ending inventory, cost of goods sold, gross profit. And as well as explain how to find the calculations for September 6^{th ??????}

On September 1^st, UB placed an order with McGraw-Hill to purchase 120 accounting textbooks at a per unit cost of $110 each, under terms 2/10, n/30. The textbooks were received the same day.

Account Names	Debit	Credit
Purchases A/c - Dr. To McGraw-Hill(creditor)	13,200	13,200

On September 4^th, UB returned 20 of the accounting textbooks to the publisher as they did not come with the Connect access code attached to the book.

Account Names	Debit	Credit
Purchases Return A/c - Dr. To Purchases A/c Mc Graw Hill(creditor) A/c - Dr. To Purchase Return A/c	2,200 2,200	2,200 2,200

On September 5^th, UB complained to McGraw Hill about the condition of the accounting textbooks, as some of them were damaged slightly during shipping. McGraw Hill granted UB an allowance of $1,000.

Account Names	Debit	Credit
Allowance A/c - Dr. To Purchases A/c Mc Graw Hill(creditor) A/c - Dr. To Allowance A/c	1,000 1,000	1,000 1,000

On September 6^th, UB paid McGraw-Hill for the amount owing on the accounting textbooks.

Account Names	Debit	Credit
Mc Graw Hill(creditor) A/c - Dr. Discount Received A/c - Dr. To Cash A/c To Purchases A/c	10,000 1,100	9,900 1,200

On September 7^th, UB sold 90 of the accounting textbooks for $140 each, all were paid with either cash or credit card.

Sale price = 90 books x $140 per book = $12,600

Account Names	Debit	Credit
Cash A/c Dr. To sales	12,600	12,600

On September 8^th, 20 accounting textbooks were returned by students to UB, as the students had decided after the first week of classes, accounting was not for them, and luckily, they hadn't taken the textbook out of its packaging yet. UB reimbursed the students with cash as these students had paid cash when they originally bought the textbooks.

Account Names	Debit	Credit
Sales Return A/c - Dr.(20 x 140 $ = $2800) To Cash A/c	2,800	2,800

On September 15^th, UB paid employees $1,000, $300 of which related to work done in August and $700 for wages up to September 15^th.

Account Names	Debit	Credit
Expenses Accrual A/c - Dr. Wages A/c - Dr To Cash A/c	300 700	1,000

On September 30^th, UB received their monthly utility bill for $450 and will pay this in October.

Account Names	Debit	Credit
Utility Bill A/c - Dr. To Expenses Accrual A/c	450	450

Answer rating: 100% (QA)

Income Statement for UB September 2023 Revenue Sales 12600 90 books 140 Sales Returns 2800 20 books ... View the full answer