Question

1 The list below shows select accounts for Reading Readiness, Inc. as of January 31, 20X1. 2 (Accounts are in alphabetical order.) Accounts Payable Accounts Receivable Cash Equipment Income Tax Expense Operating Expense Other Expenses Other Revenues Rent Expense Salaries Expense Short-term Notes Payable Test Prep Revenue Tutoring Revenue Unearned Revenue 8,088 6,960 13,445 4,800 1,350 11,800 3,482 6,050 4,800 6,882 17,200 15,400 9,100 1,046 19 Required: 20 1. Prepare an Income Statement for the month ended January 31, 20X1. Use cell references 21 to select account titles and amounts to be included on the income statement. 22 Note: List revenues and expenses in order of largest to smallest dollar amounts.

Answer 1

Solution READING READINESS INC Income Statement for the month ending 31st January 20XX Amount Particulars Revenue A) Test prep revenue Tutoring revenue other revenue Total $15,400 $9,100 $6,050 $30,550 Expenses (B) Income tax operating Expenses other expenses Rent expense salaries expenses Total expense $1,350 $11,800 $3,482 $4,800 $6,882 $28,314 Net Income (A-B) $2,236