Question

The following revenue and expense account balances were taken from the ledger of Acorn Health Services Co. after the accounts had been adjusted on January 31, 20Y7, the end of the fiscal year:

Depreciation Expense $10,000
Insurance Expense 9,000
Miscellaneous Expense 8,150
Rent Expense 60,000
Service Revenue 634,900
Supplies Expense 4,100
Utilities Expense 44,700
Wages Expense 548,200

Requierd:
Prepare an income statement.

Answer 1

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

1. Service Revenue: $634,900
2. Less: Expenses
3. Depreciation Expense: $10,000
4. Insurance Expense: $9,000
5. Miscellaneous Expense: $8,150
6. Rent Expense: $60,000
7. Supplies Expense: $4,100
8. Utilities Expense: $44,700
9. Wages Expense: $548,200
10. Total Expenses: $684,150
11. 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.

Answer 2

Answer and Explanation:

The preparation of the income statement is presented below:

Service revenue $634,900

Less:

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

Net loss -$49,250