Question

During August, 2018, Bramble's Supply Store generated revenues of $59800. The company's expenses were as follows: cost of goods sold of $36200 and operating expenses of $4200. The company also had rent revenue of $1000 and a gain on the sale of a delivery truck of $2000 Bramble's net income for August, 2018 is $22400. $23600 $19400 $20400

Answer 1

Net income	Revenue - Expenses
Calculation of net income for August, 2018
Revenue	$59,800
Rent revenue	$1,000
Gain on sale of delivery truck	$2,000
Cost of goods sold	-$36,200
Operating expenses	-$4,200
Net income	$22,400
Operating income	Operating revenue - Operating expenses
Calculation of operating income for August, 2018
Revenue	$61,100
Cost of goods sold	-$36,900
Operating expenses	-$3,500
Operating income	$20,700
Balance as per bank statement	$78,100
Add: Deposits in transit	$10,600
Less: Outstanding checks	$10,900
Adjusted cash balance	$77,800
NSF check returned and bank services would have already been included in bank statement and thus not considered for adjustment.
Balance as per bank statement	$71,400
Add: Deposits in transit	$14,100
Add: Errorneous check	$2,800
Less: Checks outstanding	$54,800
Correct balance in bank account	$33,500
Sales revenue	$600,000
Returns and allowances	-$30,000
Net sales	$570,000
Uncollectible %	2%
Bad debt expense	$11,400