E3-10 The income statement of Benning Co. for the month of July shows net income

Question

E3-10 The income statement of Benning Co. for the month of July shows net income of $1,400 based on Service Revenue $5,500, Wages Expense $2,300, Supplies Expense $1,200, and Utilities Expense $600. In reviewing the statement, you discover the following.

1.Insurance expired during July of $400 was omitted.
2.Supplies expense includes $200 of supplies that are still on hand at July 31.
3.Depreciation on equipment of $150 was omitted.
4.Accrued but unpaid wages at July 31 of $300 were not included.
5.Services provided but unrecorded totaled $500.

Instructions

Prepare a correct income statement for July 2008. (List amounts from largest to smallest eg 10, 5, 3, 2. Enter all amounts as positive amounts and subtract where necessary.)




Benning Co.



Income Statement

Explanation / Answer

BENNING CO

July 2008

Service Revenue $5,500 + 500 = 6000                500 is added due to services are provided but not recorded

Less expenses:

Wages Expense $2,300 + 300 = 2600                300 accured expenses are to be added in wages expense

Supplies Expense $1,200 - 200 = 1000               200 supplies to be deducted as the amount was included as supply expense.

Utilities Expense $600

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.