Question

The adjusted trial balance of Indigo Corporation at December 31, 2017, includes the following accounts: Retained Earnings $16,651, Dividends $6,759, Service Revenue $35,644, Salaries and Wages Expense $13,785, Insurance Expense $1,799, Rent Expense $3,872, Supplies Expense $1,413, and Depreciation Expense $804.
Prepare an income statement for the year.

Answer 1

Answer:

$13,971

Explanation:

An income statement indicates the profit or loss a business makes in the financial period. Profits or loss is realized by subtracting expenses from revenue.

The revenue for  Indigo Corporation  is $35,644,

Expenses

Salaries and Wages Expense $13,785

Insurance Expense       $1,799

Rent Expense                             $3,872

Supplies Expense                       $1,413

Depreciation Expense                $804

Total expenses       $21,673

Income will be

=$35,644 - $21,673

= $13,971

Retained Earnings and Dividends are part of company profits. They are not business income or expenses.