Question

The revenues and expenses of Sentinel Travel Service for the year ended August 31, 2019, follow: Fees earned $745,515 Office expense 171,470 Miscellaneous expense 14,910 Wages expense 357,845 Prepare an income statement for the year ended August 31, 2019.

Answer 1

Answer:

Step-by-step explanation:

What I will do is attach a picture of the income statement prepared, and explained the process and figures gotten, first we start with writing the Revenue with the year 2019, for the revenue, the only value given is the Fees earned, then after Revenue, we go to expenses, where we have Office, Miscellaneous, and wages, then we find the total of that, then after this we go to net income before Taxes, which is the difference with the total revenue and total expense, which is $745,515 - $544,225 = $201,290

Then we find the income tax expenses and we assume that tax is 40% of your profit, which is 40% of $201,290 = 40/100 x 201290 = $80,516

Then we find the net income which is the income tax expense subtracted from the net income before tax

201290 - 80516 = 120,774

Find the picture attached from the income statement