Question

Liu Zhang operates Lawson Consulting, which began operations on June 1. On June 30, the company’s records show the following accounts and amounts for the month of June.

Cash $ 6,500 Service revenue $ 12,900
Accounts receivable 4,800 Equipment 6,800
Accounts payable 3,800 Rent expense 2,300
L. Zhang, Withdrawals 1,800 Wages expense 8,000

Need an income statement for june

Answer 1

Lawson Consulting

LAWSON CONSULTING

Income Statement for the month ended June 30

Service revenue $ 12,900

Rent expense 2,300

Wages expense 8,000 10,300

Net income $2,600

Step-by-step explanation:

a) Data and Calculations:

Cash $ 6,500

Accounts receivable 4,800

Equipment 6,800

Accounts payable 3,800

L. Zhang, Withdrawals 1,800

Service revenue $ 12,900

Rent expense 2,300

Wages expense 8,000

b) The income statement for the month of June summarizes Lawson's revenue and expenses, giving rise to a net income of $2,600. On the statement, the financial profitability of the business is determined. Only temporary accounts from the list of account balances are used to prepare the statement.