Reference no: EM132664553

Peter's Curling Inc. operates several curling centres [for games and equipment sales]. The following transactions occurred in October of the current year:

a. Peter's collected $13,000 from customers for games played in October (example).

b. Peter's sold $7,000 in curling equipment inventory; received $3,000 in cash and the rest on account; cost ofsales is $4,200.

c. Peter's received $2,500 from customers on account who purchased merchandise in September.

d. The curling league gave Peter's a deposit of $2,600 for the upcoming fall season.

e. Peter's paid $1,900 for the September electricity bill and received the October bill for $2,200 to be paid in November

f. Peter's paid $4,700 to employees for work in October

g. Peter's purchased $1,800 in insurance for coverage from October 1 to December 31.

h. Peter's paid $1,400 to plumbers for repairing a broken pipe in the washrooms.

Required:

Problem 1: Prepare a statement of earnings for Peter's Curling Inc. for the month of October 2020.