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-   -   Income statement (https://www.askmehelpdesk.com/showthread.php?t=392248)

  • Aug 31, 2009, 02:06 PM
    bethofmary
    Income statement
    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
  • Sep 1, 2009, 01:09 AM
    morgaine300

    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

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

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