I have been tasked with preparing an income statement. First I will show you what I have come up with...
Revenues
Fees 384,000
=384,000
Expenses
Advertising Expense 15,000
Supplies Expense 46,000
Rent Expense 10,000
Utilities Expense 3,000
Miscellaneous Expense 4,400
Salaries Expense 61,000
=139,400
384,000-139,400=244,600 (income before taxes)
Income Taxes (30% of income before taxes) 73,380
=171,220 net income
What has me confused is the information given that I did not use (and am not sure if I have to use) which includes the following:
Accounts payable $ 35,000
Accounts receivable 65,000
Cash 19,500
Owners' equity 140,000
Am I on the right track here? Do those 4 bits of information NOT go on the income statement?
Lost & Confused!! :confused: :confused:
