The income statement of Cullumber Company for the month of July shows a net income of $2,600 based on Service Revenue $6,000, Salaries and Wages Expense $2,000, Supplies Expense $1,000, and Utilities Expense $400. In reviewing the statement, you discover the following.
1. Insurance expired during July of $400 was omitted.
2. Supplies expense includes $350 of supplies that are still on hand on July 31.
3. Depreciation on equipment of $350 was omitted.
4. Accrued but unpaid salaries and wages on July 31 of $500 were not included.
5. Services performed but unrecorded totaled $700. Prepare a correct income statement for July 2017.

Question

contestada

Respuesta :

andromache andromache · Answer 1 · 2020-02-17T08:31:57+01:00

Explanation:

The preparation correct income statement for July 2017 is presented below:

Cullumber Company

Income statement

For the month of July

Revenue

Service revenue $6,700 ($6,000 + $700)

Total revenues $6,700 (A)

Less: Expenses

Salaries and Wages Expense $2,500 ($2,000 + $500)=

Supplies Expense $650 ($1,000 - $350)

Utilities Expense $400

Insurance expense $400

Depreciation expense $350

Total expenses $4,300 (B)

Net income $2,400 (A- B)