Question:
I. Prepare the Cost of Goods Sold , Income Statement BalanceSheet for the period February 2016 .(Present Jornal inputs and states should have the right format andheader)1. Angelica invested $ 200,000 to set up shop selling lamps, -IN.feb. 12. February. 1 a pre-paid one-year $ 2.400 in cash on February 1insurance was purchased.3. Lamps bought-in Elvia ‘s Inc. $ 1,500 in office supplies to paythem within 90 days. feb. 54. Lamp-in bought Tania LAMP lamps Distributor 150-x to $ 10and SP FOB was $ 100.00 on credit days in February. 10.5. 8-x lamps were sold at $ 25.00 each at FOB $ 200 cash DP.Feb. 156. Angelica told his accountant Sheila to pay $ 500.00 of what isdue to Elvia and half of what is owed to Tania. Feb. 187. Decorations Ivelisse sent an invoice for $ 1,575.00 for officedecoration. Feb. 188. 40-x lamps were sold at $ 30.00 each. SP FOB $ 150. Feb. 20All credit.9. Cross and Diana are selling lamps and each charges $ 300.00Sheila accounting charges $ 750.00. the wage payment to all.Feb. 22.10. You will pay the bill Ivelisse Feb. 25.11. At the end of the month were only $ 650 for office supplies12. Angelica withdrew $ 1,250.00 for personal use in February.28.
Answer
Income Statement for February 2016
| Revenue | Amount |
|---|---|
| Sales | $1,440.00 |
| Total Revenue | $1,440.00 |
| Cost of Goods Sold (COGS) | |
| Beginning Inventory | |
| Purchases | $1,750.00 |
| Total COGS | $1,750.00 |
| Gross Profit | -$310.00 |
| Expenses | |
| Office Decoration | $1,575.00 |
| Insurance Expense | $200.00 |
| Office Supplies Expense | |
| Total Expenses | $1,775.00 |
| Net Income (Loss) | -$2,085.00 |
Balance Sheet as of February 29, 2016
| Assets | Amount | Liabilities and Equity | Amount |
|---|---|---|---|
| Assets | |||
| Cash | $90.00 | Liabilities | |
| Accounts Receivable | Accounts Payable | $1,400.00 | |
| Inventory | $1,360.00 | ||
| Prepaid Insurance | $200.00 | ||
| Equity | |||
| Total Assets | $1,650.00 | $1,650.00 |
Journal Entries:
Feb. 12:
- Dr Cash $200,000
- Cr Capital $200,000 (Angelica invested $200,000 to set up shop selling lamps)
