Question

BBQ & Balloons Four friends – John, Paul, Ringo, and George – have decided to put a stand outside a shopping centre entrance for selling barbecue and balloons to members of the public during a weekend. The enterprise was named BBQ & Balloons.

Question 1.

Each barbecue is sold for $2.00 and each balloon is sold for $1.00. Throughout the two days, the four friends were able to sell 2,000 barbecues and 1,000 balloons. The four friends did not have to bother about the stock of sausage and bread or balloons. They made an arrangement with a supplier and had to pay only $0.25 per barbecue served (a slice of bread and a sausage) and $0.03 for each balloon. For the sake of remuneration, the friends have agreed that each one would receive $400 for the two days of hard work. Besides the expense of labour and material, the four friends had other expenses for the two days. For the sake of simplicity, two expenses were related to the production process, which was leasing a BBQ ($200) and a balloon pump ($50). The other two expenses were related to sales and administrative tasks, which were leasing a gazebo ($50) and getting a permit for having the stand outside the shopping centre ($250).

Required:

Based only on information provided in Question 1, prepare an income statement for BBQ & Balloons.

Answer 1

Income will be $ 720 .