Reference no: EM133133287

Question - Etienne opened a gym and fitness studio called Body Builders Fitness Center at the beginning of November of 2021. It is now the end of December 2021, and Etienne is trying to determine whether he made a profit during his first two months of operations. You offer to help him and ask to see his accounting records. He shows you a shoebox and tells you that every piece of paper pertaining to the business is in that box.

As you go through the material in the shoe box, you discover the following:

1. A receipt from Gaya Properties for $8,000 for November's rent on the exercise studio.

2. Bank deposit slips totalling $7,360 for money collected from customers who attended exercise classes.

3. An invoice for $50,000 for exercise equipment. The first payment is not due until December 31.

4. A bill for $2,100 from the maintenance service that cleans the studio. Etienne has not yet paid this bill.

5. A December 19 parking ticket for $200. Etienne says he was in a hurry that morning to get to the Fitness Center on time and forgot to put money in the parking meter.

6. A handwritten list of customers and fees for the classes they have taken. As the customers attend the classes, Etienne writes their names and the amount of each customer's fee on the list. As customers pay, Etienne crosses their names off the list. Fees not crossed off the list amount to $2,400.

7. A credit card receipt for $800 for printing flyers advertising the grand opening of the studio. For convenience, Etienne used his personal credit card.

8. A credit card receipt for $800 for four warm-up suits Etienne bought to wear at the studio. He also put this purchase on his personal credit card.

Required - Make an income statement for the first two months of operation of Body Builders Fitness Center.