Question

A list of accounts and their balances of O’Neill’s Psychological Services, at its year end July 31, 2021, is presented below:

Supplies		$790
Unearned Revenue		1,070
Supplies Expense		5,930
Cash		6,435
Accounts Receivable		7,335
Accounts Payable		9,100
Rent Expense		10,840
Notes Payable		22,750
Salaries Expense		45,000
T. O’Neill, Drawings		57,300
Equipment		58,550
T. O’Neill, Capital		65,300
Service Revenue		93,960

(b1)

Prepare an income statement.

Answer 1

O’Neill’s Psychological Services
Income Statement
For the Year Ended July 31, 2021
	$	$
Revenue:
Service revenue	93,960.00
Total Revenue		93,960.00
Less Expenses:
Salaries expense	45,000.00
Supplies Expenses	5,930.00
Rent expense	10,840.00
Total Expenses		61,770.00
Net Income (Loss)		32,190.00