# 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
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

Step 1

a)

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

Step 2

b)

Prepare the income statement for 201...

### Want to see the full answer?

See Solution

#### 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