Preparing simple statement of income) Friedrich Burgel runs a ski school and excursion company called Easy Peasy
Question:
Preparing simple statement of income) Friedrich Burgel runs a ski school and excursion company called Easy Peasy Ltd. His busiest months are December through February, although, if the weather holds, he extends his school and excursions into March. For the month of January, he recorded the following items:
1. He spent $1,465 on the utilities for the office and $6,450 on gas and repairs for the vehicles.
2. He used supplies that cost $16,465.
3. Customers paid him $237,570 for excursions that took place in January and $65,500 in deposits for trips scheduled in February.
4. He paid $35,791 for employee wages and he spent $10,000 to an influencer for advertising the company.
Required
a. Prepare a statement of income to determine how much Easy Peasy Ltd. earned in January.
b. Are there any other costs that might have been incurred in January but were not listed?
Step by Step Answer:
Understanding Financial Accounting
ISBN: 9781119715474
3rd Canadian Edition
Authors: Christopher D. Burnley