An inexperienced accountant for Prestwick Company prepared the following income statement for the month of August, current year.
PRESTWICK COMPANY
AUGUST 31, CURRENT YEAR
Revenues:
Services provided to customers $ 13,000
Investment by stockholders 5,000
Loan from bank 15,000 $ 33,000
Expenses:
Payments to long-term creditors $ 11,700
Expenses required to provide services to customers 9,500
Purchase of land 16,000 37,200
Net income $ 4,200
Prepare a revised income statement in accordance with generally accepted accounting principles.
