Question

I need to prepare an Income Statement for the attached Adjusted Trial Balance that I just prepared accordingly. I started the Income Statement and realize it gets recorded by larger items first. There are no fees earned ... just capital stock. Would I begin with Capital Stock ?

BELLA COMPUTERS
ADJUSTED TRIAL BALANCE
PERIOD ENDING JUNE 30, 2020
DESCRIPTION	DEBIT	CREDIT
CASH	$ 319,620
DEPOSIT ELECTRIC COMPANY	$          500
DEPOSIT WATER SEWER GARBAGE	$          200
DEPOSIT TELEPHONE	$          250
OFFICE SUPPLIES	$          500
PREPAID INSURANCE	$      3,600
PREPAID LEASE	$    11,000
MACHINERY & EQUIPMENT	$ 100,000
FURNITURE & FIXTURES	$    20,000
ACCUMULATED DEPRECIATION - FURNITURE & FIXTURES		$             167
ACCUMULATED DEPRECIATION - MACHINERY & EQUIPMENT		$         1,190
ACCOUNTS PAYABLE		$         1,200
UNEARNED REVENUE		$       50,000
NOTES PAYABLE - FURNITURE & FIXTURES		$       20,000
NOTES PAYABLE - MACHINERY & EQUIPMENT		$       90,000
CAPITAL STOCK		$     300,000
WAGES PAYABLE		$       450.00
ACCOUNTING & LEGAL EXPENSE	$      2,500
INDEPENDENT CONTRACTOR	$          900
UTILITIES EXPENSE	$          430
SUPPLIES EXPENSE	$          700
DEPRECIATION - FURNITURE & FIXTURES	$          167
DEPRECIATION - MACHINERY & EQUIPMENT	$      1,190
LEASE EXPENSE	$      1,000
INDEPENDENT CONTRACTOR	$          450
	$ 463,007	$     463,007

Answer 1

Bella Computers
Income Statement
For the period ended June 30, 2020
Particulars	Amount	Amount
Revenue		$0
Less: Expense
Accounting & Legal Expense	$2,500
Independent Contractor	$1,350
Utilities Expense	$430
Supplies Expense	$700
Depreciation - Furniture & Fixtures	$167
Depreciation - Machinery & Equipment	$1,190
Lease Expense	$1,000
Total Expense		$7,337
Net Income/(Loss)		-$7,337