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bethofmary
Aug 31, 2009, 02:06 PM
I'm a little confused as how to begin my income statement all my examples begin with finding the gross profit with sales revenue minus cost of goods sold and then subtracting all of the expenses and such

In the problem I have though the only accounts I have are the expenses no revenues?
Any help with how I should begin to set this up?

My accounts on the adjusted trial balance are as follows:

Cash
Accounts receivable
Prepaid rent
Prepaid insurance
Office supplies
Rental equipment
Accum. Depreciation
Notes payable
Accounts payable
Interest payable
Salaries payable
Unearned rental fees
Common stock
Retained earnings
Rental fees earned
Salaries expense
Maintenance expense
Utilities expense
Rent expense
Office supplies expense
Depreciation expense
Interest expense

morgaine300
Sep 1, 2009, 01:09 AM
That's because you were looking at statements for merchandising companies and you have a service company.

Go here and scroll down just a bit until you hit the blue statements. Notice there isn't any sales.
http://www.principlesofaccounting.com/chapter%204.htm#PREPARING%20FINANCIAL%20STATEMENTS (http://www.principlesofaccounting.com/chapter%204.htm#PREPARING%20FINANCIAL%20STATEMENTS )

And yes you do have revenues. What was all that thread about the backhoe rental about? Revenues.