Question

Imaging Services was organized on March 1, 2018. A summary of the revenue and expense transactions for March follows:Fees earned $1,100,000Wages expense 715,000Rent expense 80,000Supplies expense 9,000Miscellaneous expense 12,000Prepare an income statement for the month ended March 31.

Answer 1

Income statement of Imaging services for the month ended March 31, 2018.

Amount in $'000 Amount in $'000 Revenue 1,100

Cost of sales (Supplies expense) (9)

Gross income 1,091

Operating expenses

Wages expense 715

Rent expense 80

Miscellaneous expense 12

(807)

Net operating income 284

Step-by-step explanation:

The income statement is one that that shows the revenue and expenses of an organization accumulating to the net income of the organization.

It considers all elements of cost from the cost of sales to all operating expenses and is given over a period.