Question

The following revenue and expense account balances were taken from the ledger of Guardian Health Services Co. after the accounts had been adjusted on February 28, 20Y0, the end of the fiscal year:

Depreciation Expense $17,400
Insurance Expense 8,530
Miscellaneous Expense 6,790
Rent Expense 70,300
Service Revenue 334,100
Supplies Expense 4,180
Utilities Expense 26,800
Wages Expense 262,700
Prepare an income statement.

Answer 1

Guardian Health Services Co.

Income Statement for the year ended February 28, 20Y0

$ $

Sales

Service Revenue 334,100

Cost of Goods sold

Supplies Expense 4,180

Gross Profit 329,920

Operating expense

Utilities Expense 26,800

Wages Expense 262,700

Depreciation Expense 17,400

Insurance Expense 8,530

Miscellaneous Expense 6,790

Rent Expense 70,300

392,520

Net profit/(loss) (62,600)

Step-by-step explanation:

The income statement is a statement that shows the net profit or loss of a business for a period end. It shows the income made and expenses incurred in the course of a given period.