Please Prepare The Shop Income Statement For The Year Ended 31 October 2010

Question

ScanSolve AI Tutor · Accepted Answer

Assuming the question refers to the year ended 31 October 20-9, based on the provided data, here is the Shop Income Statement:

Identify the shop's revenue and direct expenses from the provided data for the year ended 31 October 20-9.
- Shop Sales (Revenue): \7,480$
- Purchases of goods for resale (Cost of Goods Sold): \6,200$
- Wages - Shop Assistant (Operating Expense): \1,380$
Calculate the Gross Profit.
Gross Profit is determined by subtracting the Cost of Goods Sold from the Shop Sales.
$\text{Gross Profit} = \text{Shop Sales} - \text{Purchases of goods for resale}$
$\text{Gross Profit} = \$7,480 - \$6,200 = \$1,280$
Calculate the Net Profit or Loss from the Shop.
Net Profit (or Loss) is calculated by subtracting the operating expenses from the Gross Profit.
$\text{Net Profit (Loss)} = \text{Gross Profit} - \text{Wages - Shop Assistant}$
$\text{Net Profit (Loss)} = \$1,280 - \$1,380 = -\$100$
Prepare the Shop Income Statement.
$\begin{array}{l r} \multicolumn{2}{c}{\textbf{Millbrook Cricket Club}} \\ \multicolumn{2}{c}{\textbf{Shop Income Statement}} \\ \multicolumn{2}{c}{\textbf{For the Year Ended 31 October 20-9}} \\ \text{Shop Sales} & \$7,480 \\ \text{Less: Cost of Goods Sold} & \\ \quad \text{Purchases of goods for resale} & \underline{(\$6,200)} \\ \text{Gross Profit} & \$1,280 \\ \text{Less: Operating Expenses} & \\ \quad \text{Wages - Shop Assistant} & \underline{(\$1,380)} \\ \text{Net Loss from Shop} & \underline{\underline{(\$100)}} \\ \end{array}$
The net loss from the shop for the year ended 31 October 20-9 is \boxed{\text{\100}}$.

Step-by-step solution