Question

Prepare an annual income statement from the following adjusted trial balance.

Answer 1

Answer:

                               Lucky Enterprises Income statement

                                                    Amount in $                           Amount in $

Revenue                                                                                          122,100

Operating expenses:                            

Salaries and Wages Expense      83,300

Rent Expense                                22,400

Supplies Expense                           5,500

Insurance Expense                          3,700

Interest Expense                                 800

Bad Debt Expense                              900

Depreciation Expense                     2,100                                  

                                                                                                       (118,700 )  

Net Income/(loss)                                                                            3,400    

Explanation:

The income statement is the statement that shows if an organization made a net income or loss from its operations over a period of time.

It shows the sales and expenses of the organization.