Question

The following revenue and expense account balances were taken from the ledger of Guardian Health Services Co. after the accounts had been adjusted on February 28, 20Y0, the end of the fiscal year:
Depreciation Expense $17,400
Insurance Expense 8,530
Miscellaneous Expense 6,790
Rent Expense 70,300
Service Revenue 334,100
Supplies Expense 4,180
Utilities Expense 26,800
Wages Expense 262,700
Prepare an income statement.

Answer 1

Answer:

                             Guardian Health Services Co.

           Income Statement for the year ended February 28, 20Y0

                                                                        $                        $

Sales

      Service Revenue                                                          334,100

Cost of Goods sold

      Supplies Expense                                                            4,180

Gross Profit                                                                          329,920

Operating expense

      Utilities Expense                                   26,800

      Wages Expense                                  262,700

      Depreciation Expense                            17,400

      Insurance Expense                                  8,530

      Miscellaneous Expense                           6,790

      Rent Expense                                         70,300

                                                                                            392,520

Net profit/(loss)                                                                    (62,600)

Explanation:

The income statement is a statement that shows the net profit or loss of a business for a period end. It shows the income made and expenses incurred in the course of a given period.