Patricia Green's Organic Fruit and Vegetable Stall

Preparing Simple Financial Statements

Scene 50 / of 60

Preparing the Income Statement - Establishing the Operating Expenses

Expenses should be identified and taken away from Gross Profit. Expenses can be found on the debit side of the Trial Balance. Select the expense items from the trial balance to the Income Statement.


Account DEBIT CREDIT
Bank Account 2050  
Capital Account   2000
Creditor - Retail Displays Account   300
Equipment Account 300  
Furniture Account 200  
Insurance Account 180  
Purchases Account 600  
Rent Account 150  
Sales Account   1180
  3480 3480


Income from Sales:    
   Sales 1180  
   Net Sales:
 		   1180
Cost of Sales:    
   Purchases 600  
   Total Cost of Sales:
 		   600
GROSS PROFIT:   580
Other Income:    
   Total Other Income:
 		   0



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