Question

The following account balances were taken from the adjusted trial balance for Capstone Messenger Service, a delivery service firm, for the fiscal year ended April 30, 20Y7: Depreciation Expense $9,800 Fees Earned 520,400 Insurance Expense 1,860 Miscellaneous Expense 3,920 Rent Expense 74,500 Salaries Expense 261,700 Supplies Expense 3,330 Utilities Expense 28,400 Prepare an income statement.

Answer 1

Answer and Explanation:

The preparation of the income statement is presented below:

Revenues

Fees earned $520,400

Total revenues $520,400

Less expenses:

Depreciation Expense $9,800

Insurance Expense $1,860

Miscellaneous Expense $3,920

Rent Expense $74,500

Salaries Expense $261,700

Supplies Expense $3,330

Utilities Expense $28,400

Total expenses $383,510

Net income $136,890