Question

The following account balances were taken from the 2021 adjusted trial balance of the Bowler Corporation: sales revenue, $485,000; cost of goods sold, $248,000; salaries expense, $61,000; rent expense, $36,000; depreciation expense, $46,000; and miscellaneous expense, $28,000. Prepare an income statement for 2021.

Answer 1

Bowler Corporation

Income Statement for 2021

Sales revenue $485,000

Less Cost of goods sold ($248,000)

Gross Profit $237,000

Less Expenses

salaries expense $61,000

rent expense $36,000

depreciation expense $46,000

miscellaneous expense $28,000 ($171,000)

Net Income/ (Loss) $66,000

Step-by-step explanation:

Income Statement shows the Operating performance of the the company over the financial period.

Income/loss = Sales - Expenses.