The account balances of Wonders Towing Service at June 30, 2018, follow (Click t

Question

The account balances of Wonders Towing Service at June 30, 2018, follow (Click the icon to view the account balances.) Requirements 1. Prepare the income statement for Wonders Towing Service for the month ending June 30, 2018 2. What does the income statement report? Requirement 1. Prepare the income statement for Wonders Towing Service for the monthe 1 Data Table Equipment Office Supplies Notes Payable Rent Expense Cash Wonders, Withdrawal $ 27,050 Service Revenue S 14,500 6,500 6,000 3,900 2,700 1,400 Accounts Receivable 8,000 Accounts Payable 850 2,400 4,500 Wonders, Capital, June 1, 2018 Salaries Expense Net Income Print Done

Explanation / Answer

(1) Income Statement for the month ended 30 June, 2018 :

(2) The Income Statement so prepared reports incomplete income position as there exists certain pending adjustment entries. The final picture of the Net Income only comes out after putting the adjusting entries in the Income Statement.

Service Revenues $14500 Less: Expenses: Rent expense 850 Salaries expense 2700 Tota expenses reported 3550 Income from operations 10950

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