Reference no: EM132386833

Question

Peter's Curling Inc. operates several curling centres (for games and equipment sales). The following transactions occurred in the month of October.

(a)Peter's collected $13,750 from customers for games played in October.

(b)Peter's sold $8,750 in curling equipment inventory; received $5,500 in cash and the rest on account; cost of sales is $5,300.

(c)Peter's received $3,500 from customers on account who purchased merchandise in September.

(d)The curling league gave Peter's a deposit of $4,000 for the upcoming fall season.

(e)Peter's paid $4,500 for the September electricity bill and received the October bill for $4,950 to be paid in November.

(f)Peter's paid $6,500 to employees for work in October.

(g)Peter's purchased $1,950 in insurance for coverage from October 1 to December 31.

(h)Peter's paid $2,250 to plumbers for repairing a broken pipe in the washrooms.

Prepare a statement of earnings for Peter's Curling Inc. for the month of October 2017. Use an income tax rate of 30 percent.