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 $16,400 Insurance Expense 8,040
Miscellaneous Expense 6,400 Rent Expense 66,300
Service Revenue 314,900 Supplies Expense 3,940
Utilities Expense 25,260 Wages Expense 247,600

Required:
Prepare an income statement.

Answer 1

Answer and Explanation:

The preparation of an income statement is presented below:

Service Revenue $314,900

Less: expenses

Depreciation Expense $16,400

Insurance Expense 8,040

Miscellaneous Expense 6,400

Rent Expense 66,300

Supplies Expense 3,940

Utilities Expense 25,260

Wages Expense 247,600

Net loss -$59,040

Hence, the income statement has the net loss of $59,040