The Pineapple Pub

Preparing Simple Financial Statements

Scene 90 / of 100

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 40600  
Capital Account   40000
Creditor - Flash Sales Limited Account   10000
Creditor - Kensington Supplies Limted Account   6000
Debtor - Hampstead Heath Party Hire Account    
Discount Allowed Account 200  
Drawings Account 4200  
Energy Expenses Account 3500  
Furniture Account 18000  
Leasing Expenses Account 3500  
Purchases Account 6000  
Rent Payable Account 20000  
Rent Receivable Account   4000
Sales Account   47000
Wages Account 11000  
  107000 107000


Income from Sales:    
   Sales 47000  
   Net Sales:
 		   47000
Cost of Sales:    
   Purchases 6000  
   Closing Stock 5000  
   Total Cost of Sales:
 		   1000
GROSS PROFIT:   46000
Other Income:    
   Rent Receivable 4000  
   Total Other Income:
 		   4000



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