Question

Income Statement, Retained Earnings Statement, and Balance Sheet The amounts of the assets and liabilities of Glacier Travel Service at September 30, 20Y6, the end of the current year, and its revenue and expenses for the year. The retained earnings were $57,560, and the common stock was $7,500 as of October 1, 20Y5, the beginning of the current year. During the current year, dividends of $30,500 were paid.
Accounts payable $175,000
Accounts receivable 321,000
Cash 166,000
Common stock 70,000
Fees earned 900,000
Miscellaneous expense $37,000
Rent expense 180,000
Supplies 13,000
Supplies expense 38,000
Taxes expense 30,000
Utilities expense 75,000
Wages expense 425,000
Instructions:

1. Prepare an income statement for the current year ended September 30, 20Y6.

Answer 1

Answer:

  Income Statement Dec. 31, 20Y6

          Glacier Travel Service                

Total revenue                        $900,000

- Wages expense                 ($425,000)

- Rent expense                     ($180,000)

- Utilities expense                 ($75,000)

- Supplies expense               ($38,000 )

- Miscellaneous expense     ($37,000)

EBIT                                        $145,000

- Taxes                                   ($30,000)

Net profit                                $115,000