Understanding Financial Accounting 3rd Canadian Edition by Christopher D. Burnley solution manual

 
          Cost of goods sold                   $10,733
          Wages expense                         7,000
          Telephone expense                        160
          Utilities expense                            370
          Rent expense                               1,500
          Operating expenses                 329
          Total expenses                                                         20,092
          Net income                                                            $  4,638                     
b. Other costs that Lydia might have incurred in May not listed above include:
Depreciation expense for vehicles and equipment
Income tax expense
Cost of advertising
Other employee benefit costs such as employer portion of CPP and EI
Interest expense on any bank loans owing
Insurance expense
 
LO 5  BT: AP  Difficulty: E Time: 20 min.  AACSB: None  CPA: cpa-t001  CM: Reporting

AP1-13B
      a.                      Slip and Slide Ltd.
                             Statement of Income
For the month of July, 2xxx
 
               Service revenue                                                  $ 200,650
               Parking revenue                                                    6,000
               Total revenues                                                       206,650
               Wages expense                      $ 25,000
               Advertising expense                   5,430
               Supplies expense                       15,469