Question

Liu Zhang operates Lawson Consulting, which began operations on June 1. The Retained Earnings account balance at June 1 was $0 and the owner invested $14,540 cash in the company on June 1. On June 30, the company's records show the following accounts and amounts for the month of June. Cash Accounts receivable Equipment Accounts payable Common stock $ 7,000 4,900 6,900 3,360 14,540 Dividends Service revenue Rent expense Wages expense $ 1,900 13,200 2,400 8,000 Use the above information to prepare a June income statement for the business. LAWSON CONSULTING Income Statement

Answer 1

Income Statement
Revenues:
Service Revenue		$ 13,200.00
Total Revenue			$ 13,200.00
Expenses:
Rent Expense		$   2,400.00
Wages Expense		$   8,000.00
Total Expense			$ 10,400.00
Net Income			$   2,800.00