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Accounting (Text Only)

26th Edition
Carl Warren + 2 others
ISBN: 9781285743615

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Accounting (Text Only)

26th Edition
Carl Warren + 2 others
ISBN: 9781285743615
Textbook Problem
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Income statement

The following account balances were taken from the adjusted trial balance for Laser Messenger Service, a delivery service firm, for the fiscal year ended April 30, 2016:

Depreciation Expense $ 8,650
Fees Earned 674,000
Insurance Expense 1,500
Miscellaneous Expense 3,650
Rent Expense $ 60,000
Salaries Expense 336,900
Supplies Expense 4,100
Utilities Expense 41,200

Prepare an income statement.

To determine

Financial statement

A financial statement is the complete record of financial transactions that take place in a company at a particular point of time. It provides important financial information like assets, liabilities, revenues and expenses of the company to its internal and external users. It helps them to know the exact financial position of the company. There are four basic financial statements; they are:

  • Balance Sheet
  • Income statement
  • Statement of owners’ equity
  • Statement of cash flows

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

To Prepare: An income statement for the year ended April 30, 2016.

Explanation
L Messenger Service
Income Statement
Year Ended April 30, 2016
Particulars Amount ($) Amount ($)
Revenues:    
    Fees Earned   674,000
Expenses:    
    Salary Expense 336,900  
  �...

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