Complete the following income statement INCOME STATEMENT$2$Sales Revenue1,803,234Cost of Good Sold46,435Gross Profit1,849,669Other Operating Revenue:Interest Revenue5,362Operating ExpensesSelling, General & Administrative Expenses:Net Operating Profit1,855,031Non-Operating Income and ExpensesNet Profit (Loss) Before Tax1,855,031 Adjusted Trial BalanceThe General Journal"For the Month Ending 31/8/2021"DateAccountsDrCrDepreciation Expense - Motor VehicleAccum. Depreciation - Motor VehicleCr31/08/2021Acc. No. AccountDr700201 Accounts PayableAccounts receivable159 Accum. Depreciation - Motor VehicleAccum. Depreciation Office FurnitureAdvertising ExpenseBank LoanCapitalCashComputer ExpenseConsulting Expense244 Consulting Fees Payable6,33070010227,218Wage ExpenseWages Payable17,50031/08/20217,3501566,2406,0276104,250PAYG Withheld1,32325133,990301182,93031/08/2021Unearned Revenue28,380101176,234Sales Revenue25,542601896GST Collected2,8386046,088Interest ReceivableInterest Revenue31/08/20211283,044128501Cost of Good Sold46,435Depreciation Expense - Motor VehicleDepreciation Expense - Office FurnitureDrawings65170031/08/2021Rent Expense1,8206554B0Prepaid Rent1,8203024,780222GST Collected21,21631/08/2021Office Supplies Expense40111GST Paid9,281Office Supplies40Insurance ExpenseInterest DueInterest ExpenseInterest ReceivableInterest Revenue6059902402,806Depreciation Expense - Office FurnitureAccum. Depreciation - Office Furniture31/08/20214806032,8064801435,3624035,36231/08/2021Wage ExpenseWages PayablePAYG WithheldB,680103InventoryMotor VehicleOffice Furniture42,19884,00023,0407,812158BGR155Office SuppliesOffice Supplies ExpensePAYG Withheld10416,79231/08/2021Insurance Expense99060240Prepaid Insurance9902616,781141Prepaid InsurancePrepaid RentRent ExpenseSales Commission ExpenseSales RevenueService RevenueUnearned Revenue7,92014214,5606061,8206074,6434011,803,23428,9984022417,7406086.100Utilities ExpenseUtilities Payable2432,033Wage ExpenseWages Payable60934,33024215,669TOTAL520,9632,143,873TOTAL48,56848,568Relevant information:1. Adjusting Items:DateDescriptionDescription31/8/21The motor vehicle is depreciated using the straight line method. It has a useful life of 10 years and a zero residual value.The business has 7 sales staff. Each sales staff member's GROSS wage is $2100 per fortnight [PAYG withheld of $378]. At the end ofthe month, the business owed its sales staff 1 week worth of wages and that is yet to be recorded.31/8/21Received $28380 (including GST) from a customer at the start of August 2021 for provision of some advanced cleaning services. At thetime, the amount was recorded as uneamed revenue and GST collected. The business managed to deliver these services by the end31/8/21of August 2021.On August 1, 2021 the business deposited $19200 into a fixed deposit at ABC Bank. The interest offered was at 8% per annum andpaid quarterly. The interest on the $19200 fixed deposit acrrued by the end of the month is yet to be recorded.31/8/21On August 1, 2021 the business paid $18018 (including GST) for 9 months of office rent. This was recorded at the time as Prepaid Rentand GST Paid.31/8/21On August 11, 2021 the business purchased 15 packs of markers worth $660 (including GST) which were recorded as Office Suppliesand GST Paid. Heracles counted the markers at the end of August 2021 and found that 1 packs of these markers have been consumedbut their consumption has not been recorded.31/8/21The office furniture is depreciated using the straight line method. It depreciates at 25% per annum and is assumed to have a zero31/8/21residual value.The business hires 5 general office assistants. Each assistant is paid a NET wages of $748 per week (PAYG withheld of $120J. At the31/8/21end of the month, the business owed its office assistants 2 weeks of wages and that is yet to be recorded.On August 1, 2021 the business paid $9801 (including GST) for 9 months of business insurance. This was recorded at the time asPrepaid Insurance and GST Paid.31/8/21

Question

Complete the following income statement INCOME STATEMENT$2$Sales Revenue1,803,234Cost of Good Sold46,435Gross Profit1,849,669Other Operating Revenue:Interest Revenue5,362Operating ExpensesSelling, General & Administrative Expenses:Net Operating Profit1,855,031Non-Operating Income and ExpensesNet Profit (Loss) Before Tax1,855,031 Adjusted Trial BalanceThe General Journal&#34;For the Month Ending 31/8/2021&#34;DateAccountsDrCrDepreciation Expense - Motor VehicleAccum. Depreciation - Motor VehicleCr31/08/2021Acc. No. AccountDr700201 Accounts PayableAccounts receivable159 Accum. Depreciation - Motor VehicleAccum. Depreciation Office FurnitureAdvertising ExpenseBank LoanCapitalCashComputer ExpenseConsulting Expense244 Consulting Fees Payable6,33070010227,218Wage ExpenseWages Payable17,50031/08/20217,3501566,2406,0276104,250PAYG Withheld1,32325133,990301182,93031/08/2021Unearned Revenue28,380101176,234Sales Revenue25,542601896GST Collected2,8386046,088Interest ReceivableInterest Revenue31/08/20211283,044128501Cost of Good Sold46,435Depreciation Expense - Motor VehicleDepreciation Expense - Office FurnitureDrawings65170031/08/2021Rent Expense1,8206554B0Prepaid Rent1,8203024,780222GST Collected21,21631/08/2021Office Supplies Expense40111GST Paid9,281Office Supplies40Insurance ExpenseInterest DueInterest ExpenseInterest ReceivableInterest Revenue6059902402,806Depreciation Expense - Office FurnitureAccum. Depreciation - Office Furniture31/08/20214806032,8064801435,3624035,36231/08/2021Wage ExpenseWages PayablePAYG WithheldB,680103InventoryMotor VehicleOffice Furniture42,19884,00023,0407,812158BGR155Office SuppliesOffice Supplies ExpensePAYG Withheld10416,79231/08/2021Insurance Expense99060240Prepaid Insurance9902616,781141Prepaid InsurancePrepaid RentRent ExpenseSales Commission ExpenseSales RevenueService RevenueUnearned Revenue7,92014214,5606061,8206074,6434011,803,23428,9984022417,7406086.100Utilities ExpenseUtilities Payable2432,033Wage ExpenseWages Payable60934,33024215,669TOTAL520,9632,143,873TOTAL48,56848,568Relevant information:1. Adjusting Items:DateDescriptionDescription31/8/21The motor vehicle is depreciated using the straight line method. It has a useful life of 10 years and a zero residual value.The business has 7 sales staff. Each sales staff member's GROSS wage is $2100 per fortnight [PAYG withheld of $378]. At the end ofthe month, the business owed its sales staff 1 week worth of wages and that is yet to be recorded.31/8/21Received $28380 (including GST) from a customer at the start of August 2021 for provision of some advanced cleaning services. At thetime, the amount was recorded as uneamed revenue and GST collected. The business managed to deliver these services by the end31/8/21of August 2021.On August 1, 2021 the business deposited $19200 into a fixed deposit at ABC Bank. The interest offered was at 8% per annum andpaid quarterly. The interest on the $19200 fixed deposit acrrued by the end of the month is yet to be recorded.31/8/21On August 1, 2021 the business paid $18018 (including GST) for 9 months of office rent. This was recorded at the time as Prepaid Rentand GST Paid.31/8/21On August 11, 2021 the business purchased 15 packs of markers worth $660 (including GST) which were recorded as Office Suppliesand GST Paid. Heracles counted the markers at the end of August 2021 and found that 1 packs of these markers have been consumedbut their consumption has not been recorded.31/8/21The office furniture is depreciated using the straight line method. It depreciates at 25% per annum and is assumed to have a zero31/8/21residual value.The business hires 5 general office assistants. Each assistant is paid a NET wages of $748 per week (PAYG withheld of $120J. At the31/8/21end of the month, the business owed its office assistants 2 weeks of wages and that is yet to be recorded.On August 1, 2021 the business paid $9801 (including GST) for 9 months of business insurance. This was recorded at the time asPrepaid Insurance and GST Paid.31/8/21

Accepted Answer

Operating Expense is expense incurred by entity in normal course of business for its normal…