Question

The assets and liabilities of Amos Moving Services at March 31, 2011, the end of the current year, and its revenue and expenses for the year are listed below. The capital of the owner was $180,000 at April 1, 2010, the beginning of the current year. Mr. Amos invested an additional $25,000 in the business during the year. Accounts Payable $1,200 Miscellaneous Expense $230 Accounts Receivable $10,340 Office Expense $1,240 Cash $32,320 Supplies $1,670 Fees Earned $84,350 Wages Expense $23,550 Land $47,000 Amos, Drawing $16,570 Building $155,960Prepare an income statement for the current year ended May 31, 2011.Fees Earned credit 84350Expenses: ? ? ?Total Expenses ?net income or net loss ??

Answer 1

Answer:

Income statement for the year ended May 31, 2011

Fees Earned                                                  $84,350

Less Expenses :

Miscellaneous Expense               $230

Office Expense                           $1,240

Wages Expense                      $23,550      ($25,020)

Net Income / (Loss)                                       $59,330

Explanation:

The Income Statement shows the results from entity`s operating activities during the period. Profit or Loss = Revenue less Expenses.