Question

Exercise 4-03 a1-a3

The adjusted trial balance columns of the worksheet for Whispering Winds Company are as follows.

Whispering Winds Company Worksheet (Partial) For the Month Ended April 30, 2019
		Adjusted Trial Balance
Account Titles		Dr.		Cr.
Cash		10,700
Accounts Receivable		7,200
Prepaid Rent		2,300
Equipment		22,700
Accumulated Depreciation—Equip.				4,700
Notes Payable				5,900
Accounts Payable				5,400
Common Stock				19,730
Retained Earnings				7,700
Dividends		3,500
Service Revenue				15,400
Salaries and Wages Expense		10,900
Rent Expense		900
Depreciation Expense		630
Interest Expense		20
Interest Payable				20
Totals		58,850		58,850

Prepare an income statement. (Enter negative amounts using either a negative sign preceding the number e.g. -55 or parentheses e.g. (55).)

Answer 1

Income statement.

Particulars	Amount	Amount
Service Revenue	15400
Total revenue(i)		15400
Expenses:
Salary and Wages Expense	(10900)
Rent Expense	(900)
Depreciation Expense	(630)
Interest Expense	(20)
Total expenses(ii)		(12450)
NET INCOME (i - ii)		2950