Revenue and Expense RecognitionAunt Bea's Catering Service provides catering service for special occasions. During 2013, Aunt Bea performed $228,500 of catering services and collected $218,200 of cash from customers. Salaries earned by Aunt Bea's employees during 2013 were $49,900. Aunt Bea paid employees $45,100 during 2013. Aunt Bea had $1,200 of supplies on hand at the beginning of the year and purchased an additional $12,640 of supplies during the year. Supplies on hand at the end of 2013 were $2,820. Other selling and administrative expenses incurred during 2013 were $10,800.Required:1.  Calculate revenue for 2013.$Calculate expenses for 2013.$ Hide  2.  Prepare the 2013 income statement.Aunt Bea's Catering ServiceIncome StatementFor the Year Ended December 31, 2013    $Expenses:      $                $  3.  Conceptual Connection: Describe the accounting principles used to prepare the income statement.The input in the box below will not be automatically graded, but may be reviewed and considered by your instructor.

Question
Asked Sep 24, 2019
63 views

Revenue and Expense Recognition

Aunt Bea's Catering Service provides catering service for special occasions. During 2013, Aunt Bea performed $228,500 of catering services and collected $218,200 of cash from customers. Salaries earned by Aunt Bea's employees during 2013 were $49,900. Aunt Bea paid employees $45,100 during 2013. Aunt Bea had $1,200 of supplies on hand at the beginning of the year and purchased an additional $12,640 of supplies during the year. Supplies on hand at the end of 2013 were $2,820. Other selling and administrative expenses incurred during 2013 were $10,800.

Required:

1.  Calculate revenue for 2013.
$

Calculate expenses for 2013.
$



  Hide    

2.  Prepare the 2013 income statement.



Aunt Bea's Catering Service
Income Statement
For the Year Ended December 31, 2013
 
     
$
Expenses:
       
 
 
$
   
 
 
 
   
 
 
 
 
 
 
     
$

 

 

3.  Conceptual Connection: Describe the accounting principles used to prepare the income statement.

The input in the box below will not be automatically graded, but may be reviewed and considered by your instructor.

 
 

 

 

 

check_circle

Expert Answer

Step 1

a)

 

The total revenue for 2013 is $228,500 and total expenses for 2013 is $71,720.

help_outline

Image Transcriptionclose

Compute the Total revenue and total expenses: Amount (S) Amount (S) Particulars Revenues: Service Revenue $228.500 Total revenue $228,500 Expenses: Salaries expense $49,900 Supplies (S1,200 $12,640 - $2,820) Other selling and administrative expense $11,020 $10,800 S71,720 BW Capital, December 31, 2019

fullscreen
Step 2

b)

 

Prepare the income statement for 201...

help_outline

Image Transcriptionclose

Prepare the income statement for 2013: Aunt Bea's Catering Service Income Statement for Year Ended 2013 Particulars Amount (S) Amount (S) Revenues S 228,500 Service Revenue Expenses Salaries expense $49,900 $11,020 Supplies (S1,200 $12,640 - $2,820) Other selling and administrative expense $10,800 $ 71,720 s 156,780 Total expenses Net income

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: On November 1, 20Y9, Lexi Martin established an interior decorating business, Heritage Designs. Duri...

A: Click to see the answer

question_answer

Q: eBay sells used products collected from different suppliers. Assume a customer purchases a used bicy...

A: Revenue Recognition is an accounting principle that determines the bases when an organization can re...

question_answer

Q: What is the easiest way to complete a closing entry. Are there any shortcuts or techniques that are ...

A: Closing entries are journal entries which are recorded to transfer the balances of temporary subsidi...

question_answer

Q: I filled in some of the work for part "a" and was wondering if somebody could check to make sure it'...

A: The required table is prepared as follows:

question_answer

Q: On January 1, 2021, Coronado Industries had 124000 shares of its $5 par value common stock outstandi...

A: Stock dividends: Stock dividends are the number of shares issued by a company to the existing shareh...

question_answer

Q: Ethics and income Reporting You have been hired as an “accounting consultant” by Watson Company to e...

A: As per the question, Watson company is following cash basis accounting, where the income and expense...

question_answer

Q: What is the difference between account receivable and account payable ?

A: Diffecrence between the accounts receivable an accounts payable are as follows:

question_answer

Q: How do I calculate the taxpayer's 2019 qualifying business income deduction for a qualified trade or...

A: Qualified business income deduction is the amount that needs to be deducted in order to find taxpaye...

question_answer

Q: I need help on this.  It's lengthy and I don't know where to start.   The sales department of Donova...

A: Hey, since there are multiple sub-parts posted, we will answer first three sub-parts. If you want an...