Dynamic Enterprises Had the Following Information During November 20X9:
Inventory

question 86

Essay

Dynamic Enterprises had the following information during November 20X9:
Inventory purchases on account $ 6,800.Inventory purchases for cash $2,800.
Sales on account $15,000.Cash sales $3,500.
$\begin{array}{lr}\text {1. Cost of goods sold on cash and credit sales} & \$9,200\\\text {2. Payment of 3 months' rent in advance (1} & \\\text { month's rent should be recognized in November) } & 2,100 \\\text { 3. Payment of inventory purchased on account } & 3,000 \\\text { 4. Collections from credit customers } & 9,900 \\\text { 5. Wages earned and paid during November } & 5,000 \\\text { 6. Wages earned but not paid during November } & 3,200 \\\text { 7. Credit purchases of supplies } & 1,200 \\\text { 8. Supplies used during November } & 200\end{array}$
Required:
Prepare an income statement for Dynamic Enterprises for the month of November, 20X9, under
the accrual basis.

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Definitions:

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