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All associated information and instructions for the Chapter $11$ case are presented between pages $706$ and $713$ in the text. The steps for setting up a new company in Section $11\mathrm{.}3($pages $706$ to $713)$ must be attempted before attempting any of the following questions.

FINANCIAL STATEMENTS

Prepare financial statements for Mookie The Beagle Coach.

PROFIT AND LOSS STATEMENT

The Profit & Loss Statement $($also called the Income Statement$)$ lists income earned and expenses incurred to generate income. Summarizing the amount of profit or loss a company has earned, the Profit & Loss Statement is one of the primary financial statements given to bankers and investors.

Profit, or net income, can be measured in two different ways:

Cash basis. A sale is recorded when cash is collected from the customer. Expenses are recorded when cash is paid.

Accrual basis. Sales are recorded when the good or service is provided regardless of when the cash is collected from the customer. Expenses are recorded when the cost is incurred or expires, even if the expense has not been paid.

QBO permits us to prepare the Profit and Loss Statement using either the accrual or the cash basis. QBO also permits us to prepare Profit and Loss Statements monthly, quarterly, or annually.

Required:

Complete the following to prepare a Profit and Loss Statement for Mookie The Beagle Coach.

From the Navigation Bar, select Reports $>$ Standard tab $>$ Business Overview $>$ Profit and Loss

Select Date Range: $02/01/2024$ to $02/29/2024$

Select Active rows or active columns

Select Accounting Method: Accrual

Select Run report

Export the Profit and Loss Statement to Excel. Complete the steps listed in the Instructions sheet of the Excel Template to copy your Profit and Loss Statement Excel export to the Excel Template.

Answer the following questions about Mookie The Beagle Coach Profit and Loss Statement.

What is the amount of Total Income $($Revenue$)?$

What is amount of Total Expenses?

What is amount of Net Income?