Lydia Cravette operates a florist shop called Scents Unlimited Ltd. During the month of May, the following things occurred: 1. She spent $210 on the telephone system, $400 on utilities, and $1,300 on rent. 2. She took in $28, 100 from selling flowers and plants. All of the shop's sales were cash sales. 3. She spent $10,800 for the cost of the flowers sold, she paid $320 for gas and repairs to the delivery vehicle (use Operating Expenses account), and she paid her employees $6,900 for wages earned during the month. (a) Prepare a statement of income to determine how much Scents Unlimited Ltd. earned in May. Scents Unlimited Ltd. Statement of Income For the month of May, 2xxx $ $ $

Lydia Cravette operates a florist shop called Scents Unlimited Ltd. During the month of May, the following things occurred: 1. She spent $210 on the telephone system, $400 on utilities, and $1,300 on rent. 2. She took in $28, 100 from selling flowers and plants. All of the shop's sales were cash sales. 3. She spent $10,800 for the cost of the flowers sold, she paid $320 for gas and repairs to the delivery vehicle (use Operating Expenses account), and she paid her employees $6,900 for wages earned during the month. (a) Prepare a statement of income to determine how much Scents Unlimited Ltd. earned in May. Scents Unlimited Ltd. Statement of Income For the month of May, 2xxx $ $ $

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 37P

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