Question

From a trial balance the accounts were:
Cash at Bank(Debit),Capital(Credit), Truck(Debit), Fuel(Debit), Office Supplies (Debit), Accounts Payable (Credit), Service (Credit), Accounts Receivable (Debit), Rent(Debit), Supplies Expense(Debit).
To transfer them into a Income statement, help me identify the income and expenses, please?

Answer 1

To prepare an income statement, we need to classify the accounts from the trial balance into revenues (income) and expenses. Here's how to categorize the accounts you've listed:

### **Revenues (Income)**
- **Service (Credit)**: This account represents the income earned from services provided.

### **Expenses**
- **Fuel (Debit)**: Expenses related to fuel used for operations.
- **Office Supplies (Debit)**: Expenses incurred for office supplies used in operations.
- **Rent (Debit)**: Expenses related to rent paid for office space.
- **Supplies Expense (Debit)**: Direct expenses incurred for supplies consumed.

### **Summary for Income Statement**
**Income:**
- Service Revenue: (Total from Service account)

**Expenses:**
- Fuel Expense: (Total from Fuel account)
- Office Supplies Expense: (Total from Office Supplies account)
- Rent Expense: (Total from Rent account)
- Supplies Expense: (Total from Supplies Expense account)

### **Final Format**
Now you can draft your income statement as follows:

**Income Statement**
```
Revenue:
Service Revenue $XXX (insert total)

Expenses:
Fuel Expense $XXX (insert total)
Office Supplies Expense $XXX (insert total)
Rent Expense $XXX (insert total)
Supplies Expense $XXX (insert total)

Total Expenses $(XXX)

Net Income (Loss) $XXX (Revenue - Total Expenses)
```

Make sure to replace the placeholders with the actual amounts from your accounts.