Final answer:
To prepare an income statement for Acorn Health Services Co., list the revenues and expenses and calculate the net income. The company had a net loss of $49,250 for the fiscal year.
Step-by-step explanation:
To prepare an income statement, we need to list the revenues and expenses and calculate the net income. Here is how you can do it:
Income Statement
- Service Revenue: $634,900
- Less: Expenses
- Depreciation Expense: $10,000
- Insurance Expense: $9,000
- Miscellaneous Expense: $8,150
- Rent Expense: $60,000
- Supplies Expense: $4,100
- Utilities Expense: $44,700
- Wages Expense: $548,200
- Total Expenses: $684,150
- Net Income (Service Revenue - Total Expenses): $-49,250
The income statement shows that Acorn Health Services Co. had a net loss of $49,250 for the fiscal year ending on January 31, 20Y7.