Sample Cafe Transactions

Item	Notes
8,700 medium cups of coffee sold at $3.00 each	Includes 600 medium cups medium cups sold to the college and delivered to a reception that has been invoiced, but not yet paid.
3,900 large cups of coffee sold at $4.00 each
Espresso maker purchased last year for $11,400	5-year life
$480 premium for business insurance	Premium for full year
$3,500 for rent	Includes $2,200 in rent deposits.
$2,100 for coffee beans	Includes coffee discarded valued at $100
$1,500 for coffee cups	0 cups in inventory at the beginning of January. $700 worth of cups still in inventory at the end of month.
$14,900 to employees for payroll	$2,200 owed in payroll taxes
$100 of interest on loan	Paid mid-month
$900 for electricity and water	Includes $600 in utility deposits
$13,200 in advertising	$3,300 per week billed monthly

Now use the transaction information to create a Accrual-Based Income Statement for January using the following template.

Account	Balance
Revenues	$
Cost of Goods Sold	$
Gross Margin, or Gross Profit	$
Expenses
Salaries and Wages	$
Rent and Utilities	$
Advertising	$
Insurance	$
Equipment Depreciation	$
Interest	$
Total Expenses	$
Net Income	$