Question

Using the Adjusted Trial Balance below prepare an Income Statement in proper form for the month ended August 31, 2018.

XYZ COMPANY
WORKSHEET
FOR THE MONTH ENDED AUGUST 31, 2018
ADJUSTED TRIAL BALANCE
ACCOUNT TITLES   DEBIT ($)   CREDIT ($)
      
Accumulated depreciation - Machinery      88,000.00
Accounts Payable      31,100.00
Accounts Receivable   27,800.00     
Capital -Mr. Owner      23,600.00
Cash   56,820.00     
Depreciation - Machinery   8,000.00     
Insurance Expense   1,200.00     
Interest Expense   200.00     
Interest Income      800.00
Machinery   87,000.00     
Meals and Entertainment Expense   2,500.00     
Notes Payable      3,000.00
Notes Receivable   7,500.00     
Owner's Withdrawals - Mr. Owner   800.00     
Service Revenue      139,000.00
Supplies     1,200.00     
Supplies Expense   400.00     
Telephone Expense   1,580.00     
Unearned Revenue      1,400.00
Utilities Expense   13,900.00     
Wage Expense   134,000.00     
Wages Payable      56,000.00
Totals   342,900.00   342,900.00

Answer 1

XYZ Company
Income Statement
For the month ended August 31,2018
Revenues:
Service Revenue	$139,000
Interest Income	$800
Total revenues		$139,800
Expenses:
Depreciation - Machinery	$8,000
Insurance Expense	$1,200
Interest Expense	$200
Meals and Entertainment Expense	$2,500
Supplies Expense	$400
Telephone Expense	$1,580
Utilities Expense	$13,900
Wage Expense	$134,000
Total Expenses		$161,780
Net income (Loss)		($21,980)