# Preparing an income statement - ExcelSign InFORMULASREVIEWFILEНOMEINSERTPAGE LAYOUTDATAVIEWCalibriA AConditional Format asCllPasteAlignment NumberEditingCellsBIUFormatting Table Styles4.FontClipboardStylesfeE27BG.1 The list below shows select accounts for Reading Readiness, Inc. as of January 31, 20X1.2 (Accounts are in alphabetical order.)Accounts Payable8,088Accounts Receivable6,96013,445CashEquipment7.4,800Income Tax Expense8.1,350Operating Expense11,800Other Expenses103,4826,0504,800Other Revenues11Rent Expense12Salaries Expense136,882Short-term Notes Payable1417,200Test Prep Revenue15,40015Tutoring Revenue169,100Unearned Revenue171,046%24 19 Required:20 1. Prepare an Income Statement for the month ended January 31, 20X1. Use cell references21 to select account titles and amounts to be included on the income statement.22 Note: List revenues and expenses in order of largest to smallest dollar amounts.2324 2. After entering the formula in cell C42, use the Excel IF function to label cell B42 as either "Net Income" or25 "Net Loss" as appropriate based on the value calculated in cell C42.26READING READINESS, INC.2728Income StatementFor the Month Ended January 31, 20X129Revenues:30313233Total Revenues34Expenses:353637383940Total Expenses4142

Question
112 views
1. Prepare an income statement from a list of accounts.

I do not understand what it is telling me to do. Every time I try something I get an incorrect response.

Linda

check_circle

Step 1

Income statement:

The financial statement which reports revenues and expenses from business operations and result of those operations as net income or net loss for a particular time period is referred as to as income statement.

Step 2

Cell reference:

...

### Want to see the full answer?

See Solution

#### Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in