The manufacturing overhead budget at Foshay Corporation is based on budgeted direct labor-hours. The direct labor budget indicat
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The preparation of WTI Insurance Company's income statement for the year is as follows:
WTI Insurance Company
<h3>Income Statement</h3>For the year ended December 31,
Tuition Fees $109,577
Training Fees 48,717
Total Revenue $154,694
Expenses:
Depreciation Expense -Professional Library $5,349
Deprecation Expense - Equipment 10,698
Salaries Expense 49,307
Insurance Expense 2,674
Rent Expense 24,468
Teaching Supplies Expense 7,869
Advertising Expense 7,132
Utility Expense 5,706
Total expenses $113,203
Net income $45,091
<h3>How do you prepare Income Statements from Unadjusted Trial Balance?</h3>To prepare an income statement from an unadjusted trial balance, you must take into consideration all the necessary end-of-period adjustments.
The adjustments ensure that the financial statements are prepared in accordance with the accrual basis. The accrual concept requires every expense and revenue for the period to be accounted for or recognized, whether received in cash or paid for.
<h3>Question Completion with Data from Unadjusted Trial Balance:</h3>Tuition Fees $103,924
Training Fees 38,717
Depreciation Expense -Professional Library $0
Deprecation Expense - Equipment $0
Salaries Expense $48,907
Insurance Expense $0
Rent Expense 22,429
Teaching Supplies Expense $0
Advertising Expense $7,132
Utility Expense $5,706
See attachment for more information.
Required: Prepare the income statement to show the net income.
<h3>Adjustments:</h3>a. Insurance Expense $2,674
b. Teaching Supplies Expense = $7,869 ($10,187 - $2,318)
c. Depreciation Expense - Equipment = $10,698
d. Depreciation Expense - Professional Library = $5,349
e. Training Fees = $48,717 ($38,717 + $10,000)
f. Tuition Fees $109,577 (103,924 + $5,653)
g. Salaries Expense $49,307 ($48,907 + $100 x 4)
h. Rent Expense = $24,468 ($22,429 + $2,039)
Thus, the income statement of WTI's Insurance shows a net income of $45,091.
Learn more about preparing an income statement at brainly.com/question/24498019
