The income statement of Montee Co. for the month of July shows net income of $2,

Q: The income statement of Montee Co. for the month of July shows net income of $2,

MONTEE CO Income Statement For the Month Ended July 2017 Revenues Service Revenue ($ 6,400+ $ 700 ) $ 7,100 Expenses Salaries and Wages Expense ($ 2,100 + $ 400) $ 2,500 Supplies Expense ($ 1,400 - $ 250) $ 1,150 Utilities Expense $ 600 Insurance expense $ 500 Depreciation expense $ 250 Total expenses $ 5,000 Correct Net income $ 2,100 . . . . . ALL THE VERY BEST

ID: 2554399 • Letter: T

Question

The income statement of Montee Co. for the month of July shows net income of $2,300 based on Service Revenue $6,400, Salaries and Wages Expense $2,100, Supplies Expense $1,400, and Ubilities Expense $600. In reviewing the statement, you discover the following 1. Insurance expired during July of $500 was omitted. 2. Suppies expense indudes $250 of supplies that are still on hand at July 31 3. Depreciation on equipment of $250 was omitted. 4. Accrued but unpaid salaries and wages at July 31 of $400 were not included. 5. Services performed but unrecorded totaled $700 Prepare a correct income statement for July 2017.

Explanation / Answer

MONTEE CO

Income Statement

For the Month Ended July 2017

Revenues

Service Revenue ($ 6,400+ $ 700 ) $ 7,100

Expenses

Salaries and Wages Expense ($ 2,100 + $ 400) $ 2,500

Supplies Expense ($ 1,400 - $ 250) $ 1,150

Utilities Expense $ 600

Insurance expense $ 500

Depreciation expense $ 250

Total expenses $ 5,000

Correct Net income $ 2,100

ALL THE VERY BEST

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The income statement of Montee Co. for the month of July shows net income of $2,

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