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    Lilbit1963's Avatar
    Lilbit1963 Posts: 4, Reputation: 1
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    #1

    Oct 27, 2011, 11:34 PM
    Preparing income statement with supplies expense?
    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
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Oct 28, 2011, 06:49 AM
    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.
    Lilbit1963's Avatar
    Lilbit1963 Posts: 4, Reputation: 1
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    #3

    Oct 28, 2011, 12:44 PM
    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.
    Lilbit1963's Avatar
    Lilbit1963 Posts: 4, Reputation: 1
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    #4

    Oct 28, 2011, 12:58 PM
    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
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #5

    Oct 28, 2011, 05:34 PM
    Already answered in the other post.
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