Question

On January 1, Year 1, the general ledger of a company includes the following account balances:
  

Accounts	Debit				Credit
Cash	$	59,300
Accounts Receivable		26,200
Allowance for Uncollectible Accounts					$	2,800
Inventory		36,900
Notes Receivable (5%, due in 2 years)		19,200
Land		161,000
Accounts Payable						15,400
Common Stock						226,000
Retained Earnings						58,400
Totals	$	302,600			$	302,600

  
During January Year 1, the following transactions occur:
  

January		1		Purchase equipment for $20,100. The company estimates a residual value of $2,100 and a four-year service life.
January		4		Pay cash on accounts payable, $10,100.
January		8		Purchase additional inventory on account, $88,900.
January		15		Receive cash on accounts receivable, $22,600.
January		19		Pay cash for salaries, $30,400.
January		28		Pay cash for January utilities, $17,100.
January		30		Sales for January total $226,000. All of these sales are on account. The cost of the units sold is $118,000.

Information for adjusting entries:

1. Depreciation on the equipment for the month of January is calculated using the straight-line method.
2. The company estimates future uncollectible accounts. The company determines $3,600 of accounts receivable on January 31 are past due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 3% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.)
3. Accrued interest revenue on notes receivable for January.
4. Unpaid salaries at the end of January are $33,200.
5. Accrued income taxes at the end of January are $9,600.

I need help with making an income statement

Answer 1

Depreciation on equipment p.a.= (Cost - Residual value)/Service life = (20,100 - 2,100)/4 = $4,500

Depreciation per month = 4500/12 = $375

Accounts receivable as at Jan 31st = Opening balance + Sales on account - Cash received

= 26,200 +226,000 - 22,600 = $229,600

Allowance for uncollectible accounts = 50% of past due = 50% * 3,600 = 1,800

Remaining accounts receivable = 229,600 - 3,600 = 226,000

Uncollectible = 3% of remaining = 226,000 * 3% = 6,780

Total uncollectible = 1,800 + 6,780 = 8,580

Balance already in books = $2,800

Proviosn to be made = 8,580 - 2,800 = $5,780

Accrued interest for notes receivable = 19,200 * 5% = 960 p.a

For Jan = 960/12 = $80

Same excel below

Income Statement
For the year ended 31st January
	Amount in $	Amount in $
Incomes
Sales		226,000.00
Accrued interest revenue on notes receivable		80.00
Total income		226,080.00
Expenses
Cost of goods sold	118,000.00
Depreciation	375.00
Salaries	63,600.00
Utilities	17,100.00
Provision for uncollectible accounts	5,780.00	204,855.00
Profit before tax		21,225.00
Tax expense		9,600.00
Profit after tax		11,625.00