Q2 Question 1 On May 1 2017 Park Flying School Ltd a compa

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Q2

* Question 1 On May 1, 2017, Park Flying School Ltd., a company that provides flying lessons, was started with an investment of 46,102 cash in the business. Following are the assets and liabilities of the company on May 31, 2017, and the revenues and expenses for the month of May (all amounts in thousands) Cash Accounts Receivable Equipment Service Revenue Advertising Expense Accounts Payable 4,602 Notes Payable 8,302 Rent Expense 28,000 1,447 647 2,253 153 65,102 Maintenance and Repairs Expense 7,902 Gasoline Expense 1,602 Utilities Expense 2,502 No additional investments were made in May, but the company paid dividends of \\398 (thousand) during the month * Question 1 Prepare an income statement for the month of May. PARK FLYING SCHOOL LTD. Income Statement (in thousands)

Solution

Prepare income statement :

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REVENUE
Service revenue		7902
EXPENSES
Rent expenses	(1447)
Maintenance and repairs expenses	(647)
Gasoline expenses	(2253)
Utilities expenses	(153)
Advertising expenses	(1602)
Total expenses		(6102)
Net Income		1800