[smank06]

I am having a very hard time understanding how to prepare an income statement. Here is the information I have...
*Prepare an income statement for the year ended December 31, 2010
-NOT SURE HOW TO SET UP THE INCOME STATEMENT CONFIDENTLY AND NEED HELP B/C ITS DUE TOMORROW (OCTOBER 8TH)
-HERES THE INFO

ACCOUNTS PAYABLE---------------------------15,000
ACCOUNTS RECEIVABLE ------------------------11,000
ACCUMULATED DEPRECIATION EXPENSE (VIDEO EQUIP)-----------28,000
ADVERTISING EXPENSE----------------------------21,000
CASH------------------------------------------------24,000
COMMON STOCK---------------------------------90,000
DEPRECIATION EXPENSE------------------------12,000
DIVIDENDS----------------------------------------15,000
INSURANCE EXPENSE------------------------------3,000
NOTE PAYABLE (DUE 2013)-----------------------70,000
PREPAID INSURANCE------------------------------6,000
RENT EXPENSE------------------------------------17,000
RETAINED EARNINGS (BEGINNING)------------12,000
SALARIES EXPENSE------------------------------34,000
SALARIES PAYABLE------------------------------3,000
SERVICE REVENUE-------------------------------145,000
SUPPLIES--------------------------------------------4,000
SUPPLIES EXPENSE---------------------------------6,000
VIDEO EQUIPMENT-------------------------------------210,000



A) CALCULATE THE NET INCOME

[smank06]

This is what I have so far but not sure if its correct

Service revenue----------------------------145,000
Net sales---------------------------145,000


Operating expenses
Salaries expense----------------34,000
Depreciation expense------------12,000
Insurance expense---------------3,000
Supplies expense-------------------6,000
Advertising expense---------------21,000
Rent expense----------------------17,000
Total----------------------------------93,000

Net income------------------------------52,000

Can anyone justify whether this is correct or not pleasee?

[smank06]

Thanks this site is greeeattt j/k

[morgaine300]

This site is also full of volunteers who give of their time for free, who have lives and families and jobs, and who come here when they can, and since are not being paid, are not under an obligation.

And are also not responsible for the fact that you were trying to get help on your homework the night before it was due. That was your responsibility.

[smank06]

I know I was just mad I didn't know the answer. No disrespect to the website intended at all

[morgaine300]

OK, that's fine. We've just gotten people who blame us cause they didn't get their homework done or got a D on some test. So nice to hear, thanks. :)