The Assets and Liabilities of Amos Moving Services at March

question 180

Essay

The assets and liabilities of Amos Moving Services at March 31, 2014, the end of the current year, and its revenue and expenses for the year are listed below. The capital of the owner was $180,000 at April 1, 2013, the beginning of the current year. Mr. Amos invested an additional $25,000 in the business during the year.
Prepare an income statement for the current year ended March 31, 2014.

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Definitions:

Cost of Merchandise Sold

The direct costs attributable to the goods sold by a company, including purchase price, freight, storage, and packaging.

Inventories

Assets held for sale in the ordinary course of business, or in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process.

Cash Payment

Money that is paid out by a business, often documented by a cash disbursement journal.

Direct Method

An approach to reporting cash flows from operating activities which lists major classes of gross cash receipts and payments.