These financial statement items are for Barone Corporation at year end, July 31,

Question

These financial statement items are for Barone Corporation at year end, July 31, 2020.

Barone issued $16,100 of common shares during the year.

Wages payable $2,400 Wages expense 53,800 Utilities expense 24,400 Equipment 34,300 Accounts payable 4,300 Service revenue 77,800 Rent revenue 8,300 Bank loan payable 2,000 Common shares 33,200 Cash 26,000 Accounts receivable 10,200 Accumulated depreciation, equipment 6,500 Dividends declared 4,000 Depreciation expense 4,300 Interest expense 100 Income tax expense 1,600 Retained earnings, August 1, 2019 24,200 Prepare a single step income statement for the year. BARONE CORPORATION Statement of Income

Explanation / Answer

BARONE CORPORATION

Income Statement

for the year ended July 31 2020

Service Revenue

$ 77,800.00

Rent revenue

$    8,300.00

Total Revenue

$ 86,100.00

Operating expenses

Wages expenses

$ 53,800.00

Utilities Expenses

$ 24,400.00

Depreciation Expense

$    4,300.00

Total Operating Expenses

$ 82,500.00

Operating Income

$    3,600.00

Less: Interest Expenses

$        100.00

Income before Taxes

$    3,500.00

Income tax Expense

$    1,600.00

Net Income

$    1,900.00

Income statement in the format given in the question is provided below

BARONE CORPORATION

Income Statement

for the year ended July 31 2020

Service Revenue

$    77,800.00

Rent revenue

$       8,300.00

Total Revenue

$     86,100.00

Expenses

Wages expenses

$    53,800.00

Utilities Expenses

$    24,400.00

Depreciation Expense

$       4,300.00

Interest Expenses

$          100.00

Income tax Expense

$       1,600.00

Total Expenses

$     84,200.00

Net Income

$        1,900.00

BARONE CORPORATION

Income Statement

for the year ended July 31 2020

Service Revenue

$ 77,800.00

Rent revenue

$    8,300.00

Total Revenue

$ 86,100.00

Operating expenses

Wages expenses

$ 53,800.00

Utilities Expenses

$ 24,400.00

Depreciation Expense

$    4,300.00

Total Operating Expenses

$ 82,500.00

Operating Income

$    3,600.00

Less: Interest Expenses

$        100.00

Income before Taxes

$    3,500.00

Income tax Expense

$    1,600.00

Net Income

$    1,900.00

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