Question

The following account balances were taken from the adjusted trial balance for Urgent Messenger Service, a delivery service firm, for the fiscal year ended November 30, 20Y1: Depreciation Expense $12,200 Fees Earned 990,000 Insurance Expense 5,750 Miscellaneous Expense 6,650 Rent Expense 80,000 Salaries Expense 502,400 Supplies Expense 7,150 Utilities Expense 40,000. Prepare an income statement.

Answer 1

Answer:

          Urgent Messenger Service

                Income Statement

for the fiscal year ended November 30, 20Y1

                                             $                 $

Fees Earned                                       990,000

Supplies Expense                              (7,150)    

Gross Income                                     982,850

Less: Operating Expenses

Depreciation Expense    12,200

Insurance Expense c       5,750

Miscellaneous Expense  6,650

Rent Expense                  80,000

Salaries Expense            502,400

Utilities Expense             40,000

                                                          (647,000)

Net Income                                        335,850

Explanation:

Income statement shows the the income / loss of a business for the period. It measure the net value after deducting all the expenses from the all the incomes of the business.