Homework SoursePrepare the income statement Start with the heading and then
Prepare the income statement.
Start with the heading and then complete the rest of the statement.
Payments of cash:
Acquisition of equipment . . . . . . . . . . . .
$206,500
Cash balance, August 1, 2017 . . . . . . . . . .
$0
Dividends . . . . . . . . . . . . . . . . . . . . . . . .
2,000
Cash balance, August 31, 2017 . . . . . . . . .
5,900
Retained earnings
Cash receipts:
August 1, 2017 . . . . . . . . . . . . . . . . . . .
0
Issuance (sale) of stock to owners . . . .
20,100
Retained earnings
Rent expense . . . . . . . . . . . . . . . . . . . . . . .
1,900
August 31, 2017
?
Common stock . . . . . . . . . . . . . . . . . . . . . .
20,100
Utilities expense . . . . . . . . . . . . . . . . . . . . .
5,700
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . .
206,500
Adjustments to reconcile net income
Office supplies . . . . . . . . . . . . . . . . . . . . . .
7,500
to net cash provided by operations . . . .
1,500
Accounts payable . . . . . . . . . . . . . . . . . . . .
9,000
Salary expense . . . . . . . . . . . . . . . . . . . . . .
78,200
Service revenue . . . . . . . . . . . . . . . . . . . . .
278,600
PrintDone
| Payments of cash: | ||||
| Acquisition of equipment . . . . . . . . . . . . | $206,500 | Cash balance, August 1, 2017 . . . . . . . . . . | $0 | |
| Dividends . . . . . . . . . . . . . . . . . . . . . . . . | 2,000 | Cash balance, August 31, 2017 . . . . . . . . . | 5,900 | |
| Retained earnings | Cash receipts: | |||
| August 1, 2017 . . . . . . . . . . . . . . . . . . . | 0 | Issuance (sale) of stock to owners . . . . | 20,100 | |
| Retained earnings | Rent expense . . . . . . . . . . . . . . . . . . . . . . . | 1,900 | ||
| August 31, 2017 | ? | Common stock . . . . . . . . . . . . . . . . . . . . . . | 20,100 | |
| Utilities expense . . . . . . . . . . . . . . . . . . . . . | 5,700 | Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . | 206,500 | |
| Adjustments to reconcile net income | Office supplies . . . . . . . . . . . . . . . . . . . . . . | 7,500 | ||
| to net cash provided by operations . . . . | 1,500 | Accounts payable . . . . . . . . . . . . . . . . . . . . | 9,000 | |
| Salary expense . . . . . . . . . . . . . . . . . . . . . . | 78,200 | Service revenue . . . . . . . . . . . . . . . . . . . . . | 278,600 |
Solution
Prepare income statement :
| REVENUE | ||
| Service revenue | 278600 | |
| EXPENSES | ||
| Salary expense | (78200) | |
| Utilities expense | (5700) | |
| Rent expense | (1900) | (85800) |
| NET INCOME | 192800 | |
