Question

Income Statement Imaging Services was organized on March 1, 2018. A summary of the revenue and expense transactions for March follows: Fees earned $482,000 Wages expense 300,000 Rent expense 41,500 Supplies expense 3,600 Miscellaneous expense 1,900 Prepare an income statement for the month ended March 31. Imaging Services Income Statement For the Month Ended March 31, 2018 $ Expenses: $ Total expenses $ Check My Work10 more Check My Work uses remaining.

Answer 1

Answer:

Total Expense:      $ 347,000

Income:    $ 135,000

Explanation:

Income Statement Imaging Services

For the Month Ended March 31, 2018

Fees earned                                                                          $482,000

Wages expense                                      $ 300,000

Rent expense                                                $41,500

Supplies expense                                           $3,600

Miscellaneous expense                                   $1,900          

Total Expenses                                                                         $ 347,000

Income                                                                                       $ 135,000 Wages, rent , supplies and miscellaneous expenses are totaled and deducted from the fees earned. Fee earned is the revenue and the expenses are deducted from it. By deducting expenses from revenue we get the income.

Answer 2

Answer:

Income statement of Imaging Services for the year ended March 1 , 2018  

                                                       Amount in $      Amount in $  

Revenue                                                                      482,000.00  

Supplies expense                                                         (3,600.00)    

Gross profit                                                               478,400.00  

Operating expenses:  

Wages expense                                 300,000.00  

Rent expense                                             41,500.00  

Miscellaneous expenses                       1,900.00      (343,400.00)

Net profit                                                               135,000.00  

Explanation:

The income statement is a statements of the sales/ revenue and the expenses incurred by an entity for a given period.

The net of the sale and cost of sales (supplies expense in this case) gives the gross profit which is netted off the operating expenses to get the operating profit.