The Quick Stop is a fast food restaurant.During March. QuickStop recorded the fo

Question

The Quick Stop is a fast food restaurant.During March. QuickStop recorded the following sales to customers and cost of doingbusiness: Sales tocustomers                             4,400 Cost of food productsused                2,100 Cost of rented building and equipment 1,250 Cost of employee labor services used  1,000 Maintenance and utilitiesused               600 Prepare a schedule that shows the amount of profit (or loss)earned by Quick Stop during March. The Quick Stop is a fast food restaurant.During March. QuickStop recorded the following sales to customers and cost of doingbusiness: Sales tocustomers                             4,400 Cost of food productsused                2,100 Cost of rented building and equipment 1,250 Cost of employee labor services used  1,000 Maintenance and utilitiesused               600 Prepare a schedule that shows the amount of profit (or loss)earned by Quick Stop during March.

Explanation / Answer

Sales tocustomer $4,400 less: Cost of food product used $2,100         C ost of employeelabor          service used $1,000 $3,100 GrossProfit $1,300 less: Rent expense $1,250          Maintenance andutilities $600 $1,850 Netloss ($550) Notes: It is assumed that cost of rented building and equipment isconsidered            as Rent expense for the period.

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