Question

On December 31, Hawkin's records show the following accounts.

Equipment $ 4,500

Cash 2,400

Rent Expense 3,000

Accounts Receivable 2,100

Services Revenue 17,500

Accounts Payable 7,500

Wages Expense 8,000

Utilities Expense 2,200

Use the above information to prepare a December income statement for Hawkin.

Revenues Expenses Total expenses

Answer 1

To prepare an income statement for Hawkin based on the given information, we need to calculate the Revenues and Expenses. The income statement format is typically:

Income Statement for Hawkin
For the Month Ended December 31, 20XX

Revenues:
- Services Revenue: $17,500

Expenses:
- Rent Expense: $3,000
- Wages Expense: $8,000
- Utilities Expense: $2,200

Total Expenses: $3,000 + $8,000 + $2,200 = $13,200

Now, let's calculate the net income:

Net Income = Total Revenues - Total Expenses
Net Income = $17,500 - $13,200 = $4,300

So, the income statement for Hawkin for the month ended December 31, 20XX, would be as follows:

Income Statement for Hawkin
For the Month Ended December 31, 20XX

Revenues:
- Services Revenue: $17,500

Expenses:
- Rent Expense: $3,000
- Wages Expense: $8,000
- Utilities Expense: $2,200

Total Expenses: $13,200

Net Income: $4,300