Question

Use the following list of accounts for Milner's Star Express Cleaning Service. Cash $2,026 Fees Earned 13,835 Accounts Payable 7,530 D. Milner, Capital January 1, 20-- 6,000 D. Milner, Drawing 1,750 Utilities Expense 153 Prepaid Insurance 1,216 Rent Expense 1,200 Accounts Receivable 4,080 Equipment 15,290 Wages Expense 1,650 Required: 1. Prepare an income statement for the year ended December 31, 20--. Milner's Star Express Cleaning Service Income Statement For the Year Ended December 31, 20--

Answer 1

Answer:

                 Milner's Star Express Cleaning

Income Statement For the Year Ended December 31, 20--

Fees Earned                   13,835

Utilities Expense   153

Rent Expense    1,200

Wages Expense 1,650  

total expenses                 3,003  

net income                      10,832

Explanation:

We will subtract the expenses account from the fees earned to get net income

The other accounts will be ignores as they are not used in the calculations for the net income