Question

Where2 Services is a small service firm that advises high school students on college opportunities. Joseph Kapp, the founder and president, has collected the following information for March: $ Advertising costs Building rent and utilities Printing, fax, and computing costs Sales Training costs Travel expenses Wages for part-time employees 4,900 2,900 4,200 20,500 590 3,400 5,900 Required: Prepare an income statement for March for Where2 Services. (Loss amount should be indicated with a minus sign.)

Answer 1

Solution

WHERE2 SERVICES
Income Statement
For the Month Ending March 31
Sales revenue		$     20,500.00
Cost of services sold
Training cost	$              590.00
Travel expenses	$          3,400.00
Wages of part time employees	$          5,900.00
Total costs of services sold		$       9,890.00
Gross margin		$     10,610.00
Marketing and administrative costs
Advertising costs	$          4,900.00
Building rent and utilities	$          2,900.00
Printing fax, and computing costs	$          4,200.00
Marketing and administrative Total costs		$     12,000.00
Net income (loss)		$     (1,390.00)