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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.