Question

Assume that you are the owner of Campus Connection, which specializes in items that interest students. At the end of January of the current year, you find (for January only) this information:

a. Sales, per the cash register tapes, of $112,000, plus one sale on credit (a special situation) of $3,000.

b. With the help of a friend (who majored in accounting), you determine that all of the goods sold during January cost $46,000 to purchase.

c. During the month, according to the checkbook, you paid $40,000 for salaries, rent, supplies, advertising, and other expenses; however, you have not yet paid the $700 monthly utilities for January.

Required:

On the basis of the data given (disregard income taxes), what was the amount of net income for January? (Hint: A convenient form to use has the following major side captions: Revenue from Sales, Expenses, and the difference—Net Income.)

Answer 1

ANSWER

CALCULATE NT INCOME FOR JANUARY :

Sales
Cash Sales	112,000
Credit Sales	3,000
Revenue from sales		115,000
Cost of goods sold		(46,000)
Gross profit		69,000
Less : Operating expenses
Salaries, rent supplies, advertising & other expense	(40,000)
Utilities expenses	(700)	(40,700)
NET INCOME		28,300

__________________________________

If you have any query or any Explanation please ask me in the comment box, i am here to helps you.please give me positive rating.

*****************THANK YOU*************