Question

2- On August 1, Youssef established Wolf Company that provides driving lessons, by investing $90,000 cash...

2- On August 1, Youssef established Wolf Company that provides driving lessons, by investing $90,000 cash in the business. Following are the assets and liabilities of the company on August 31, 2019, and the revenues and expenses for the month of August.

Cash $ 11,200- Notes Payable $60,000 -Accounts Receivable 14,400- Rent Expense 2,400 - Equipment 128,000- Repair Expense 800- Lesson Revenue 15,000 -Fuel

Expense 5,000 -Advertising Expense 1,000- Insurance Expense 800- Accounts

Payable 1,600

Youssef did not make any other investment in August, but he withdrew $3,000 in cash for personal use.

Required

Prepare income statement for the month ended August 31, 2019.

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Answer #1

*Cash, Accounts Receivable, Accounts payable, Notes payable are all Balance Sheet items thus they will not appear in Income Statement

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