Question

These financial statement items are for Cullumber Company at year-end, July 31, 2022.

Answer 1

Answer:

First recognize which are expenses and incomes:

Salaries and wages expenses (E)

Supplies Expense (E)

Service revenue (E)

Rent revenue (E)

Depreciation expense (E)

Income statement:

Sales

   Service Revenue            67,700

   Rent revenue                  9,700

Costs

   Sales and wages            (59,100)

Gross Margin                     18,300

Operating expenses

    Supplies                         (16,800)

    Depreciation                  (4,000)

Operating Income              (2,500)

Income before Tax              (2,500)

Income Tax                           (875)