Question

Income Statement The revenues and expenses of Paradise Travel Service for the year ended May 31, 20Y6, follow:______.

Fees earned $900,000
Office expense 300,000
Miscellaneous expense 15,000
Wages expense 450,000
Prepare an income statement for the year ended May 31, 20Y6.
Paradise Travel Service
Income Statement
For the Year Ended May 31, 20Y6
Fees earned $________ 2 900,000 Expenses: Wages expense $______ 4 -450,000 Office expense ______ 6 ______ 8 Total expenses ______ 9 $______ 11

Answer 1

The net income from the income statement is $135,000.

Step-by-step explanation:

The income statement for the year ended May 31, 20Y6 can be prepared as follows:

Paradise Travel Service

Income Statement

For the Year Ended May 31, 20Y6

Particulars $ $

Revenue:

Fees earned 900,000

Expenses:

Wages expense (450,000)

Office expense (300,000)

Miscellaneous expense (15,000)

Total expenses (765,000)

Net income 135,000

Therefore, the net income from the income statement is $135,000.