This accounting problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.
ScanSolve AI Answer
Assuming the question refers to the year ended 31 October 20-9, based on the provided data, here is the Shop Income Statement: Step 1: 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 Step 2: Calculate the Gross Profit. Gross Profit is determined by subtracting the Cost of Goods Sold from the Shop Sales. Gross Profit = Shop Sales - Purchases of goods for resale Gross Profit = \7,480 - \6,200 = \1,280 Step 3: Calculate the Net Profit or Loss from the Shop. Net Profit (or Loss) is calculated by subtracting the operating expenses from the Gross Profit. Net Profit (Loss) = Gross Profit - Wages - Shop Assistant Net Profit (Loss) = \1,280 - \1,380 = -\100 Step 4: Prepare the Shop Income Statement. l r 2cMillbrook Cricket Club \\ 2cShop Income Statement \\ 2cFor the Year Ended 31 October 20-9 \\ Shop Sales & \7,480 \\ Less: Cost of Goods Sold & \\ Purchases of goods for resale & (\6,200) \\ Gross Profit & \1,280 \\ Less: Operating Expenses & \\ Wages - Shop Assistant & (\1,380) \\ Net Loss from Shop & (\100) \\ The net loss from the shop for the year ended 31 October 20-9 is \100$. That's 2 down. 3 left today — send the next one.