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The income statement of Garska Co. for the month of July shows net income of $2,720 based on...

Question:

The income statement of Garska Co. for the month of July shows net income of $2,720 based on Service Revenue $7,350; Salaries and Wages Expense $2,910; Supplies Expense $950; and Utilities Expense $770. In reviewing the statement, you discover the following:

1. Insurance expired during July of $560 was omitted.

2. Supplies expense includes $240 of supplies that are still on hand at July 31.

3. Depreciation on equipment of $180 was omitted.

4. Accrued but unpaid wages at July 31 of $360 were not included.

5. Service performed but unrecorded totaled $790.

Prepare a correct income statement for July 2014.

Revenues

Service Revenue =

Expenses Salaries and Wages Expense =

Supplies Expense =

Utilities Expense =

_____ =

_____ =

Total Expenses =

Net Income/(Loss) =

Income Statement:

The income statement is an important financial statement showing the financial position of the company. This financial statement shows the net profit or net loss earned during the financial years by subtracting expenses from the revenue of the company.

Answer and Explanation:

Income Statement of Garska Co.

Particular Amount Amount
Revenue
Service ($7350+$790) $8,140
Expenses
Salaries and Wages expenses ($2,910+$360) $3,270
Supplies Expenses ($950-240) $710
Utilities Expenses $770
Insurance Expense $560
Depreciation Expenses $180
Total Expenses $5,490
Net Income $2,650

Learn more about this topic:

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What Is an Income Statement? - Purpose, Components & Format

from Accounting 101: Financial Accounting

Chapter 2 / Lesson 2
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