Exercise 3-10The income statement of Blue Spruce Corp. for the month of July shows net income of $3,000 based on Service Revenue $7,000, Salaries and Wages Expense $2,200, Supplies Expense $1,400, and Utilities Expense $400. In reviewing the statement, you discover the following. 1. Insurance expired during July of $400 was omitted.2. Supplies expense includes $350 of supplies that are still on hand at July 31.3. Depreciation on equipment of $350 was omitted.4. Accrued but unpaid salaries and wages at July 31 of $500 were not included.5. Services performed but unrecorded totaled $700.Prepare a correct income statement for July 2020.

Name: Exercise 3-10The income statement of Blue Spruce Corp. for the month o
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Description: Exercise 3-10The income statement of Blue Spruce Corp. for the month of July shows net income of $3,000 based on Service Revenue $7,000, Salaries and Wages Expense $2,200, Supplies Expense $1,400, and Utilities Expense $400. In reviewing the statemen

Net income = Total revenues - Total expenses

Answered: The income statement of Blue Spruce…

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter4: Completing The Accounting Cycle

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Exercise 3-10

The income statement of Blue Spruce Corp. for the month of July shows net income of $3,000 based on Service Revenue $7,000, Salaries and Wages Expense $2,200, Supplies Expense $1,400, and Utilities Expense $400. In reviewing the statement, you discover the following.

1.		Insurance expired during July of $400 was omitted.
2.		Supplies expense includes $350 of supplies that are still on hand at July 31.
3.		Depreciation on equipment of $350 was omitted.
4.		Accrued but unpaid salaries and wages at July 31 of $500 were not included.
5.		Services performed but unrecorded totaled $700.

Prepare a correct income statement for July 2020.

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