Income statement

Question

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 $397,400
Wages expense 202,700
Rent expense 39,300
Supplies expense 12,300
Miscellaneous expense 13,100

Prepare an income statement for the month ended March 31.

Answer 1

To prepare the income statement for Imaging Services for the month ended March 31, 20Y5, we will summarize the revenues and expenses based on the provided data. Here’s how the income statement will look:

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

| Line Item | Amount | |-----------------------------|----------------| | Revenues | | | Fees earned | $397,400 | | Total Revenues | $397,400 | | | | | Expenses | | | Wages expense | $202,700 | | Rent expense | $39,300 | | Supplies expense | $12,300 | | Miscellaneous expense | $13,100 | | Total Expenses | $267,400 | | | | | Net Income | $130,000 |

Calculation of Total Expenses:

• Wages expense: $202,700
• Rent expense: $39,300
• Supplies expense: $12,300
• Miscellaneous expense: $13,100

Total Expenses = $202,700 + $39,300 + $12,300 + $13,100 = $267,400

Calculation of Net Income:

Net Income = Total Revenues - Total Expenses = $397,400 - $267,400 = $130,000

Thus, the income statement shows a net income of $130,000 for the month of March.