Book 1 - Chapter 13

13-1. Income statement:

David Running-Elk, M.D. Income Statement For the Month Ended July 31, 2008
Revenues
Fees earned
Expenses		$4,250
Rent expense	$1,500
Wages expense	850
Interest expense	300
Utilities expense	150
Total expenses		2,800
Net income

13-2. There are two good ways to find the missing information for a financial statement
problem:

a.  One good way is to actually prepare the statement using the amounts available and then fill in
     or calculate the amounts you identified as missing. This helps you visually identify what you
     need to do.

b. A second, and faster, way is simply to use the relationships that exist on the income
statement. This is always: revenues – expenses = net income.

Using the first method:

De Anza Operating Company Income Statement For the Year Ended December 31, 2008
Revenues
Service revenue earned
Expenses		$?
Rent expense	$12,000
Wages expense	7,500
Advertising expense	3,000
Utilities expense	2,000
Supplies expense	?
Total expenses
Net income

Learning Goal 13

SOLUTIONS

Learning Goal 13: Identify and Prepare an Income Statement

Home

Home || Book Publications || Professor’s Office || Student Info & Resources || Useful Links

Worthy & James Publishing is a provider of basic accounting books covering fundamental accounting principles, business accounting, and business math. Topics in financial accounting and business accounting covered include the balance sheet, the income statement, financial ratios, and bank reconciliation.