Question

Income Statement; Net Loss 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 $15,600 Insurance Expense 7,640 Miscellaneous Expense 6,080 Rent Expense 63,000 Service Revenue 299,500 Supplies Expense 3,740 Utilities Expense 24,020 Wages Expense 235,600 Prepare an income statement. Use a minus sign to indicate a net loss.

Answer 1

To prepare an income statement for Guardian Health Services Co., you need to list the revenue and expense accounts. Subtract the total expenses from the total revenues to calculate the net loss. In this case, the company has incurred a net loss of -$56,180.

Step-by-step explanation:

An income statement is a financial statement that shows the revenue and expenses of a company during a specific period. To prepare an income statement, we need to list the revenue accounts and the expense accounts.

In this case, the revenue account is the Service Revenue with a balance of $299,500. The expense accounts include Depreciation Expense ($15,600), Insurance Expense ($7,640), Miscellaneous Expense ($6,080), Rent Expense ($63,000), Supplies Expense ($3,740), Utilities Expense ($24,020), and Wages Expense ($235,600).

To calculate the net loss, you subtract the total expenses from the total revenues:

Net Loss = Total Revenues - Total Expenses

Net Loss = $299,500 - ($15,600 + $7,640 + $6,080 + $63,000 + $3,740 + $24,020 + $235,600)

Net Loss = $299,500 - $355,680

Net Loss = -$56,180

Since the result is negative, the company has incurred a net loss.

Answer 2

-$56,180

Step-by-step explanation:

Preparation of an income statement

INCOME STATEMENT

Service revenue $299,500

Less Expenses:

Depreciation expense $15,600

Insurance expense $7,640

Miscellaneous expense $6,080

Rent expense $63,000

Supplies expense $3,740

Utilities expense $24,020

Wages expense $235,600

Total expenses $355,680

Net loss -$56,180

($299,500-$355,680)

Therefore the income statement balance will be -$56,180