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 $4,600 2,600 4,050 19,000 560 3,100 5,600 Prepare an income statement for March for Where2 Services. (Loss amount should be indicated with a minus sign.) WHERE2 SERVICES Income Statement For the Month Ending March 31 Sales Cost of services sold Total costs of services sold Marketing and administrative costs Total marketing and administrative costs

Answer 1

WHERE 2 SERVICES
Income Statement
For the Month Ending March 31
Sales		$19,000
Cost of services sold
Training costs	$560
Travel expenses	$3,100
Wages for part-time employees	$5,600
Total costs of services sold		$9,260
Gross Margin		$9,740
Marketing and administrative costs
Advertising costs	$4,600
Building rent and utilities	$2,600
Printing, fax, and computing costs	$4,050
Total marketing and administrative costs		$11,250
Net Income		-$1,540