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Income statement

Imaging Services was organized on March 1, 20Y5. A summary of the revenue and expense transactions for March follows:

Line Item Description Amount
Fees earned $482,000
Wages expense 300,000
Rent expense 41,500
Supplies expense 3,600
Miscellaneous expense 1,900

Prepare an income statement for the month ended March 31.

Answer 1

Here's how you can prepare the income statement for Imaging Services for the month ended March 31, 20Y5:

### Imaging Services
### Income Statement
### For the Month Ended March 31, 20Y5

| **Line Item** | **Amount** |
|-------------------------|-----------------|
| **Revenues** | |
| Fees Earned | $482,000 |
| | |
| **Total Revenues** | **$482,000** |
| | |
| **Expenses** | |
| Wages Expense | $300,000 |
| Rent Expense | $41,500 |
| Supplies Expense | $3,600 |
| Miscellaneous Expense | $1,900 |
| | |
| **Total Expenses** | **$347,000** |
| | |
| **Net Income** | **$135,000** |

### Explanation:
1. **Total Revenues**: This is simply the sum of fees earned, which is $482,000.
2. **Total Expenses**: This is the sum of all expenses listed:
- Wages Expense: $300,000
- Rent Expense: $41,500
- Supplies Expense: $3,600
- Miscellaneous Expense: $1,900
- Total Expenses = $300,000 + $41,500 + $3,600 + $1,900 = $347,000
3. **Net Income**: This is calculated by subtracting Total Expenses from Total Revenues:
- Net Income = Total Revenues - Total Expenses = $482,000 - $347,000 = $135,000

### Summary:
The income statement shows that Imaging Services earned a net income of $135,000 for the month ended March 31, 20Y5.