The income statement of Sheridan Company for the month of July shows net income

Question

The income statement of Sheridan Company for the month of July shows net income of $3,840 based on Service Revenue $7,900, Salaries and Wages Expense $2,340, Supplies Expense $980, and Utilities Expense $740. In reviewing the statement, you discover the following:

Prepare a correct income statement for July 2017.

1. Insurance expired during July of $440 was omitted. 2. Supplies expense includes $260 of supplies that are still on hand at July 31. 3. Depreciation on equipment of $180 was omitted. 4. Accrued but unpaid wages at July 31 of $330 were not included. 5. Service performed but unrecorded totaled $730.

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount Service revenue = 7900 + 730                8,630.00 Less Expenses Salaries and wages expense = 2340 + 330             (2,670.00) Supplies expense = 980 - 260                 (720.00) Utilities expense                 (740.00) Insurance expense                 (440.00) Depreciation expense                 (180.00) Total expenses             (4,750.00) Revised Income                3,880.00

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