Bling

Preparing Simple Financial Statements

Scene 126 / of 136

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
Advertising Account 400  
Bank Account 9560  
Bank Interest Account 50  
Capital Account   5000
Cash Account 270  
Creditor Shops R Us Account   4500
Creditor Style Accessories Account   1280
Debtor Greenland Golf Club Account    
Drawings Account 600  
Equipment Account 2000  
Fixtures & Fittings Account 4500  
Insurance Account 300  
Loan Account   10000
Purchases Account 5500  
Purchases Returns Account   120
Rent Payable Account 1000  
Sales Account   3310
Sales Returns Account 30  
  24210 24210


Income from Sales:    
   Sales 3310  
   Sales Returns 30  
   Net Sales:
 		   3280
Cost of Sales:    
   Purchases 5500  
   Purchases Returns 120  
   Closing Stock 3000  
   Total Cost of Sales:
 		   2380
GROSS PROFIT:   900
Other Income:    
   Total Other Income:
 		   0



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