Use the information given below to answer the following questions:
LPR is a company that commenced business on 1 January 2012. Below are the balances in the 30 June 2012 financial statements.
$$\begin{array} { l r }
&\$\
\text { Cash } & 2000 \
\text { Share capital } & 12000 \
\text { Accounts receivable } & 6000 \
\text { Accounts payable } & 4000 \
\text { Loan payable } & 14000 \
\text { Land } & 20000 \
\text { Inventory } & 4000 \
\text { Cost of goods sold } & 3000 \
\text { Wages expense } & 5000 \
\text { Sales } & 10000
\end{array}$$

-What is the net profit for the period ending 30 June 2012?
A) $7000
B) $2000
C) $4000
D) $2000.

Question

Use the information given below to answer the following questions:
LPR is a company that commenced business on 1 January 2012. Below are the balances in the 30 June 2012 financial statements.
$$\begin{array} { l r } 
&\$\
\text { Cash } & 2000 \
\text { Share capital } & 12000 \
\text { Accounts receivable } & 6000 \
\text { Accounts payable } & 4000 \
\text { Loan payable } & 14000 \
\text { Land } & 20000 \
\text { Inventory } & 4000 \
\text { Cost of goods sold } & 3000 \
\text { Wages expense } & 5000 \
\text { Sales } & 10000
\end{array}$$

-What is the net profit for the period ending 30 June 2012?
A) $7000
B) $2000
C) $4000
D) $2000.

Quizplus · Accepted Answer

Net profit = Sales - Cost of goods sold - Wages expense = 10000 - 3000 - 5000 = $2000

Use the Information Given Below to Answer the Following Questions