monica_d
Mar 22, 2010, 10:46 AM
QED Electronics Company had the following transactions during April while conducting its television and stereo repair business.
1. A new repair truck was purchased for $19,000.
2. Parts with a cost of $1,600 were received and used during April.
3. Service revenue for the month was $33,400, but only $20,500 was cash sales. Typically, only 95 percent of sales on account are realized.
4. Interest expense on loans outstanding was $880.
5. Wage costs for the month totaled $10,000, however, $1,400 of this had not yet been paid to the employees.
6. Parts inventory from the beginning of the month was depleted by $2,100.
7. Utility bills totaling $1,500 were paid. $700 of this amount was associated with March's operations.
8. Depreciation expense was $2,700.
9. Selling expenses were $1.900.
10. A provision for income taxes was established at $2,800, of which $2,600 had been paid to the federal government.
11. Administrative and miscellaneous expenses were recorded at $4,700.
Required:
Prepare a detailed April income statement.
1. A new repair truck was purchased for $19,000.
2. Parts with a cost of $1,600 were received and used during April.
3. Service revenue for the month was $33,400, but only $20,500 was cash sales. Typically, only 95 percent of sales on account are realized.
4. Interest expense on loans outstanding was $880.
5. Wage costs for the month totaled $10,000, however, $1,400 of this had not yet been paid to the employees.
6. Parts inventory from the beginning of the month was depleted by $2,100.
7. Utility bills totaling $1,500 were paid. $700 of this amount was associated with March's operations.
8. Depreciation expense was $2,700.
9. Selling expenses were $1.900.
10. A provision for income taxes was established at $2,800, of which $2,600 had been paid to the federal government.
11. Administrative and miscellaneous expenses were recorded at $4,700.
Required:
Prepare a detailed April income statement.