The income statement of Garska Co. for the month of July shows net income of $4,

Question

The income statement of Garska Co. for the month of July shows net income of $4,330 based on Service Revenue $8,180; Salaries and Wages Expense $2,280; Supplies Expense $940; and Utilities Expense $630. In reviewing the statement, you discover the following:

Prepare a correct income statement for July 2014.

GARSKA CO.
Income Statement
For the Month Ended July 31, 2014

1. Insurance expired during July of $530 was omitted. 2. Supplies expense includes $230 of supplies that are still on hand at July 31. 3. Depreciation on equipment of $230 was omitted. 4. Accrued but unpaid wages at July 31 of $460 were not included. 5. Service performed but unrecorded totaled $670.

Explanation / Answer

Income Statement Revenue Service revenue 8850 (8180+670) Total 8850 Expenses salaries and wages (2280+460) 2740 supplies (940-230) 710 utilities 630 depreciation 230 insurance 530 Total 4840 Net income 4010

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