Mr. Singh decided to have a barbecue to raise money for teachers at Humberside so they...

 

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Mr. Singh decided to have a barbecue to raise money for teachers at Humberside so they could have a fun staff trip. The barbecue was a success. Mr. Singh went to the bank and deposited $2,810. He came back to school and told Mr. Douglas and Mr. Khadaroo that the bank account now stood at $2,858, which represented "the most successful result of any barbecue". Mr. Khadaroo said, "Congratulations, on the successful barbecue! Could you please transfer the $2,858 into the school account so I can start booking the trip?" Mr.Singh said he couldn't transfer all the money because he still had two bills to pay. He had to pay $347 for the chicken and $630 for the materials needed to build the barbeque. The chicken was all sold but the barbecue should last for another two years. Also, Mr. Singh told Mr. Khadaroo, 10 of the 80 cases of beer were not sold and are to be returned for a refund of $4.80 per case. And at the same time, the 65 cases of empties (empty beer bottles) will be picked up, and we will get $0.60 a case. Mr. Singh also managed to sell 24 dozen buns left over for $0.50 a dozen to Dr. Douglas for a party he was having. Mr. Singh told Mr. Douglas, "This was half the unit cost of the 120 dozen purchased, but at least they will be used" Mr. Douglas didn't have the money but said he would pay tomorrow. Mr. Khadaroo asked Mr. Singh if he bought anything else. He remembered he bought barbecue sauce, condiments and charcoal for $78 cash. He also spent $370 to promote the barbecue so people would come. Mr. Khadaroo said to Mr. Singh, "It looks like last year's barbeque was more Successful. Once you pay your bills and repay the $1000 you owe me from last week, you will have less than $900 left. This is $400 less than last year's barbecue's reported net income." Mr. Singh was confused and didn't understand and didn't know if Mr. Khadaroo was right. Task: Prepare an Income Statement and Balance sheet for the barbecue to help Mr. Singh figure out if Mr. Khadaroo is right. Mr. Singh decided to have a barbecue to raise money for teachers at Humberside so they could have a fun staff trip. The barbecue was a success. Mr. Singh went to the bank and deposited $2,810. He came back to school and told Mr. Douglas and Mr. Khadaroo that the bank account now stood at $2,858, which represented "the most successful result of any barbecue". Mr. Khadaroo said, "Congratulations, on the successful barbecue! Could you please transfer the $2,858 into the school account so I can start booking the trip?" Mr.Singh said he couldn't transfer all the money because he still had two bills to pay. He had to pay $347 for the chicken and $630 for the materials needed to build the barbeque. The chicken was all sold but the barbecue should last for another two years. Also, Mr. Singh told Mr. Khadaroo, 10 of the 80 cases of beer were not sold and are to be returned for a refund of $4.80 per case. And at the same time, the 65 cases of empties (empty beer bottles) will be picked up, and we will get $0.60 a case. Mr. Singh also managed to sell 24 dozen buns left over for $0.50 a dozen to Dr. Douglas for a party he was having. Mr. Singh told Mr. Douglas, "This was half the unit cost of the 120 dozen purchased, but at least they will be used" Mr. Douglas didn't have the money but said he would pay tomorrow. Mr. Khadaroo asked Mr. Singh if he bought anything else. He remembered he bought barbecue sauce, condiments and charcoal for $78 cash. He also spent $370 to promote the barbecue so people would come. Mr. Khadaroo said to Mr. Singh, "It looks like last year's barbeque was more Successful. Once you pay your bills and repay the $1000 you owe me from last week, you will have less than $900 left. This is $400 less than last year's barbecue's reported net income." Mr. Singh was confused and didn't understand and didn't know if Mr. Khadaroo was right. Task: Prepare an Income Statement and Balance sheet for the barbecue to help Mr. Singh figure out if Mr. Khadaroo is right.