211k views
3 votes
The adjusted trial balance of Indigo Corporation at December 31, 2017, includes the following accounts: Retained Earnings $16,651, Dividends $6,759, Service Revenue $35,644, Salaries and Wages Expense $13,785, Insurance Expense $1,799, Rent Expense $3,872, Supplies Expense $1,413, and Depreciation Expense $804.

Prepare an income statement for the year.

1 Answer

3 votes

Answer:

$13,971

Step-by-step explanation:

An income statement indicates the profit or loss a business makes in the financial period. Profits or loss is realized by subtracting expenses from revenue.

The revenue for Indigo Corporation is $35,644,

Expenses

Salaries and Wages Expense $13,785

Insurance Expense $1,799

Rent Expense $3,872

Supplies Expense $1,413

Depreciation Expense $804

Total expenses $21,673

Income will be

=$35,644 - $21,673

= $13,971

Retained Earnings and Dividends are part of company profits. They are not business income or expenses.

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.