Prepare the income statement. Start with the heading and then complete the rest
ID: 2609375 • Letter: P
Question
Prepare the income statement.
Start with the heading and then complete the rest of the statement.
Payments of cash:
Acquisition of equipment . . . . . . . . . . . .
$206,500
Cash balance, August 1, 2017 . . . . . . . . . .
$0
Dividends . . . . . . . . . . . . . . . . . . . . . . . .
2,000
Cash balance, August 31, 2017 . . . . . . . . .
5,900
Retained earnings
Cash receipts:
August 1, 2017 . . . . . . . . . . . . . . . . . . .
0
Issuance (sale) of stock to owners . . . .
20,100
Retained earnings
Rent expense . . . . . . . . . . . . . . . . . . . . . . .
1,900
August 31, 2017
?
Common stock . . . . . . . . . . . . . . . . . . . . . .
20,100
Utilities expense . . . . . . . . . . . . . . . . . . . . .
5,700
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . .
206,500
Adjustments to reconcile net income
Office supplies . . . . . . . . . . . . . . . . . . . . . .
7,500
to net cash provided by operations . . . .
1,500
Accounts payable . . . . . . . . . . . . . . . . . . . .
9,000
Salary expense . . . . . . . . . . . . . . . . . . . . . .
78,200
Service revenue . . . . . . . . . . . . . . . . . . . . .
278,600
PrintDone
Payments of cash:
Acquisition of equipment . . . . . . . . . . . .
$206,500
Cash balance, August 1, 2017 . . . . . . . . . .
$0
Dividends . . . . . . . . . . . . . . . . . . . . . . . .
2,000
Cash balance, August 31, 2017 . . . . . . . . .
5,900
Retained earnings
Cash receipts:
August 1, 2017 . . . . . . . . . . . . . . . . . . .
0
Issuance (sale) of stock to owners . . . .
20,100
Retained earnings
Rent expense . . . . . . . . . . . . . . . . . . . . . . .
1,900
August 31, 2017
?
Common stock . . . . . . . . . . . . . . . . . . . . . .
20,100
Utilities expense . . . . . . . . . . . . . . . . . . . . .
5,700
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . .
206,500
Adjustments to reconcile net income
Office supplies . . . . . . . . . . . . . . . . . . . . . .
7,500
to net cash provided by operations . . . .
1,500
Accounts payable . . . . . . . . . . . . . . . . . . . .
9,000
Salary expense . . . . . . . . . . . . . . . . . . . . . .
78,200
Service revenue . . . . . . . . . . . . . . . . . . . . .
278,600
Explanation / Answer
Prepare income statement :
REVENUE Service revenue 278600 EXPENSES Salary expense (78200) Utilities expense (5700) Rent expense (1900) (85800) NET INCOME 192800