Question

The following account balances were taken from the adjusted trial balance for Urgent Messenger Service, a delivery service firm, for the fiscal year ended November 30, 2018:Depreciation Expense $10,650Fees Earned 724,500Insurance Expense 5,000Miscellaneous Expense 6,650Rent Expense 75,000Salaries Expense 393,100Supplies Expense 6,150Utilities Expense 41,200Required:1. Prepare an income statement.

Answer 1

Answer:

$186,750

Explanation:

Urgent Messenger Service,INCOME STATEMENT for the year ended

Fees Earned 724,500

Less Expenses:

Salaries expenses 393,100

Rent expenses 75,000

Utilities expense 41,200

Depreciation expenses 10,650

Miscellaneous expenses 6,650

Supplies expense 6,150

Insurance expense 5,000

Net income (724,500-537,750 ) 186,750