Question

The revenues and expenses of Sentinel Travel Service for the year ended August 31, 2019, follow: Fees earned $935,665 Office expense 215,205 Miscellaneous expense 18,715 Wages expense 449,120 Prepare an income statement for the year ended August 31, 2019.

Answer 1

Step-by-step explanation:

Before preparing the income statement, first, we have to compute the net income or net loss. So, the calculation is shown below:

In the simplest form, the net income = Total revenue - total expenses

= Fees earned - office expenses - miscellaneous expense - wages expense

= $935,665 - $215,205 - $18,715 - $449,120

= $256,625

The preparation of the income statement is presented in the spreadsheet. Kindly find the attachment below: