Question

Prepare an income statement using the information below.

Accounts payable 248,150
Accounts receivable 82,700
Accumulated depreciation 42,750
Cash 181,725
Common stock 425,802
Depreciation expense 21,375
Dividends 33,900
Furniture 613,675
Interest expense 26,400
Interest revenue 7,500
Note receivable, short term 480,600
Notes payable, long term 620,750
Prepaid expense 142,500
Rent expense 370,000
Retained earnings, beginning 127,500
Salary expense 449,000
Salary payable 25,388
Service revenue 943,225
Supplies 5,403
Supplies expense 14,025
Unearned revenue 16,238
Utility expense 36,000

Answer 1

Income statement for the Year

Service revenue 943,225

Add Other Incomes :

Interest revenue 7,500

950,725

Less Expenses :

Depreciation expense 21,375

Interest expense 26,400

Rent expense 370,000

Salary expense 449,000

Supplies expense 14,025

Utility expense 36,000 (916,800)

Net Income 33,925

Step-by-step explanation:

The Income Statement only accounts for Incomes and expenses. This Statement is used to determine the Profit earned during the Reporting Period.