Question

The income statement of Montee Co. for the month of July shows net income of $1,400 based on Service Revenue $5,500, Salaries and Wages Expense $2,300, Supplies Expense $1,200, and Utilities Expense $600. In reviewing the statement, you discover the following. 1. Insurance expired during July of $400 was omitted. 2. Supplies expense includes $250 of supplies that are still on hand at July 31. 3. Depreciation on equipment of $150 was omitted. 4. Accrued but unpaid salaries and wages at July 31 of $300 were not included. 5. Services performed but unrecorded totaled $650. Instructions Prepare a correct income statement for July 2017.

Answer 1

Montee Company Income Statement Jul-17 Particulars Amout($) Explanation Revenue Service Revenue 6150 5500 + 650 Total Revenue 6150 2600 2300 + 300 1200 - 250 950 Expenses Salaries and Wages Expenses Supplies Expense Utilities Expense Insurance Expense Depreciation on Equipment 600 600 400 150 Total Expenses 4700 Net Income 1450 6150 - 4700

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