To prepare an income statement for the first month of Fast Track's operation in September, we need to gather the revenues and expenses incurred during this period.
First, let's list the revenues:
- Consulting Fees Revenue: $19,200
Next, we will list the expenses:
- Office Supplies Expense: $600
- Rent Expense: $2,400
- Depreciation Expense: $500
- Salary Expense: $6,900
- Telephone Expense: $250
To calculate the net income, we need to subtract the total expenses from the total revenues:
Net Income = Revenues - Expenses
Revenues: $19,200
Expenses: $600 + $2,400 + $500 + $6,900 + $250 = $10,650
Net Income = $19,200 - $10,650 = $8,550
Therefore, the income statement for the month of September, the first month of Fast Track's operation, would be as follows:
Fast Track, Inc.
Income Statement
For the Month Ended September 30, 2011
Revenues:
Consulting Fees Revenue $19,200
Expenses:
Office Supplies Expense $600
Rent Expense $2,400
Depreciation Expense $500
Salary Expense $6,900
Telephone Expense $250
Total Expenses $10,650
Net Income $8,550