Khaliq Ahmad Khan: 20712

Usama Irfan: 20747

Mehran Haider 20732
Presented to: MaM Dr Qurat ul Ain

Income Statement

Sales Revenue $181,000

Less: Sales Discounts 2,000
Sales Returns and Allowances 3,500

Net Sales Revenue $175,500

Cost of Goods Sold 72,400
Gross Profit 103,100
Operating Expenses:
Administrative Expenses 18,000
Selling Expenses 19,000
Total Operating Expenses 37,000
Operating Income 66,100
Other Revenue and (Expenses)
Interest Expense 1,100
Total Other Revenue and (Expenses) 1100
Net Income (Loss) $65,000

Journal Entries

Date Accounts and Explaination Debit Credit

Jun. 30
Clos. (1) Sales Revenue 181,000
Income Summary 181,000
To close revenues.
Jun. 30
Close. (2) Income Summary 116,000
Interest Expense 1,100
Administrative Expenses 18,000
Selling Expenses 19,000
Sales Returns and Allowances 3,500
Sales Discounts 2,000
Cost of Goods Sold 72,400
To close expenses and other debit accounts.
Jun. 30 Income Summary 65,000
Clos. (3) Potter, Capital 65,000
To close Income Summary.

Jun. 30 Potter, Capital 42,000

Clos. (4) Potter, Withdrawals 42,000
To close withdrawals.