Question

From the balance statement below create an income statement

Transaction		Assets				=	Liabilities	+	Equity
No.	Cash	+	Accounts Receivable	+	Equipment	=	Accounts Payable	+	Owners Capital
1.	60000	+		+		=		+	6000
2		+		+	7000	=	7000	+
3	(200)	+		+		=		+	(200)
4	1400	+		+		=		+	1400
5		+	3000	+		=		+	3000
6	(4000)	+		+		=		+	(4000)
7	(1500)	+		+		=		+	(1500)
8	3000	+		+		=		+	3000
9		+	6000	+		=		+	6000
10	(125)	+		+		=		+	(125)
11	(500)	+		+		=		+	(500)
12		+		+		=		+
Total	58075	+	9000	+	7000	=	7000	+	67075

Balance Sheet
Assets
Cash		58075
Accounts Receivable		9000
Equipment		7000
Total Assets		74075
Liabilities and Owners Equity
Accounts Payable	7000
Owners Capital	67075
Total Liability and Owners Equity	74075

Answer 1

Basic Income Statement:
Revenues (1400+3000+3000+6000)				13400
Less: Expenses (200+4000+1500+125+500)				6325
Net Income				7075
Note: Revenues has been taken on the basis of entries which increases cash/ Accounts receivable on one hand and equity on the other hand.
Note: Whereas, the expenses are decreasing the cash on one hand and equity on the other hand.