What is wrong with my income statement? I have$5500 in service revenue, wages Expense is $2300, Supplies Expense is $1200, and Utilities Expense is $600. The net income I came up with is $1400. What am I doing wrong? Could it be that the supplies expense is still on hand? Please help me figure this out. Thanks.

Lilbit1963

Based on the information you provided, your Net Income is correct.

You should check your figures in the problem to see if they are correct, or you may have missed a revenue or an expense amount somewhere.

Post your problem and I will look into it.

Hi pready! The problem is below:

The Income statement of Benning Co for the month of July shows net income of $1400 based on Service Revenue $5500, Wages Expense $2300, Supplies Expense $1200 and Utilities Expense $600. In reviewing the statement, you discover the following..
1. Insurance expired during July of $400 was omitted
2. Supplies expense includes $200 of supplies that are still on hand at July 31.
3. Depreciation on equipment of $150 was omitted
4. Accrued but unpaid wages at July 31 of $300 were not included
5. Services provided but unrecorded totaled $500

Instructions:

Prepare a correct income statement for July 2010.

OMG, with regards to the income statement I just posted (Lilbit1963), should I be adding this new information to my income statement? It was 2am when I was trying to solve this problem last night... LOL.

Lilbit1963

Already answered in the other post.