Question

The Income Statement for Karima Pty Ltd for the month of September, 2020 showed profit of $1,400 based on Services Revenue $5,500, Wages Expense $2,300, Supplies Expense $1,200, and Electricity Expense $600. In reviewing this information you discover:

1. $400 Insurance had expired, and this has not been deducted from the Prepaid Insurance account.
2. Supplies expense included $300 which was actually on hand at 30 September
3. Depreciation on Equipment of $250 was omitted
4. Accrued wages as at 30 September was not included $500
5. Cash Services provided but unrecorded totaled $1000 for the month of September.

Required:
Prepare a revised Income Statement based on the above extra information for the month ended 30 September 2020

Answer 1

Revised Income Statement
for the month ended 30 September 2020	Amount $
Revenue
Service Revenue (5,500 + 1,000 )	6,500
Total Revenue	6,500
Expenses
Wages expense (2,300 + 500 )	2,800
Supplies Expense (1,200 - 300 )	900
Depreciation on Equipment	250
Insurance expense	400
Electricity expense	600
Total Expenses	4,950
Net profit	1,550