M3-19 Preparing an Income Statement [LO 3-1]
$2.00
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The following transactions are February 2013 activities of Swing Hard Incorporated, which offers golfing lessons in the northeastern United States. |
| a. |
Swing Hard collected $22,800 from customers for lesson services provided in February. |
| b. |
Swing Hard sold a gift card for golf lessons for $185 cash in February. |
| c. |
Swing Hard received $4,800 from credit sales made to customers in January. |
| d. |
Swing Hard collected $3,300 in advance payments for golf lessons to start in June. |
| e. |
Swing Hard billed a customer $210 for services provided between February 25 thru February 28. The bill is to be paid in March. |
| f. |
Swing Hard paid $6,600 for wages to its golf instructors for the month of February. |
| g. |
Swing Hard paid $3,400 for electricity used in the month of January. |
| h. |
Swing Hard received an electricity bill for $1,210 for the month of February, to be paid in March. |
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Prepare an income statement for Swing Hard Incorporated for the month ended February 28, 2013. (This income statement would be considered �preliminary� because it uses unadjusted balances.)
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