Drawing up an income statement for the year ending 30 June, 2019, for G. Foot Company shows a net income of $65,600.
G Foot Company
For the Period Ended June 30, 2019
Sales $266,000
Purchases 154,000
Ending inventory (18,000)
Cost of goods sold 136,000
Gross profit $130,000
Expenses:
Rent 3,800
Lighting and heating expenses 700
Salaries and wages 52,000
Insurance 3,000
Sundry expenses 300
Motor running expenses 4,600 $64,400
Net income $65,600
A statement of financial position is not required.
Trial balance as at 30 June 2012
Dr Cr
Sales 266,000
Purchases 154,000
Rent 3,800
Lighting and heating expenses 700
Salaries and wages 52,000
Insurance 3,000
Buildings 84,800
Fixtures 2,000
Accounts receivable 31,200
Sundry expenses 300
Accounts payable 16,000
Cash at bank 15,000
Drawings 28,600
Vans 16,000
Motor running expenses 4,600
Capital 114,000
Totals 396,000 396,000
Ending inventory at June 30, 2019, was $18,000
Thus, an income statement for the year ending 30 June 2019, for G. Foot Company shows a net income of $65,600, which is the difference between the sales revenue and the costs incurred for the year.
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