The following is a summary of transactions for January 20xx, gathered by the Sample Cafe bookkeeper.

Sample Cafe Transactions

Item	Notes
8,700 medium cups of coffee sold at $3.00 each	Includes 600 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
The espresso maker purchased last year for $11,400	5-year life
$480 premium for business insurance	The premium for a 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 are still in inventory at the end of the 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

Use the preceding transaction information to create a Cash-Based Income Statement for January using the following template.

Account	Balance
Revenues	$
Expenses
Coffee and Cups	$
Salaries and Wages	$
Rent and Utilities	$
Advertising	$
Insurance	$
Equipment	$
Interest	$
Other Expenses	$
Total Expenses	$
Net Income	$

Answer rating: 100% (QA)

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