Question

Problem 4-1: Prepare an Income Statement.

For the month ended February 28, XXX1, the Coastal Exterminating Service, owned and managed by Martin Billings, had the following revenue and expenses:

Fees from exterminating services                  $4,350

Salary expense                                                1,200

Equipment repair expense                                  350

Rent expense                                                      225

Heat and power expense                                    175

Telephone expense                                            105

For the month ended January 31, XXX1, the A to Z Service Company had the following revenue and expenses:

Fees from messenger services                    $5,467

Fees from telephone services                        3,875

Fees from mail services                                  1,995

Salary expense                                               4,566

Rent expense                                                    850

Advertising expense                                       1,250

Telephone expense                                           550

Travel expense                                                    70

Answer 1

Answer

--#1

Income Statement
for the month ended Feb 28
Revenues:
Fees from exterminating services		$4,350
Expenses:
Salary Expense	$1,200
Equipment repair expense	$350
Rent expense	$225
Heat and power expense	$175
Telephone expense	$105
Total expenses		$2,055
Net Income		$2,295

-- #2

Income Statement
for the month ended Jan 31
Revenues:
Fees from messenger services	$5,467
Fees from telephone services	$3,875
Fees from mail services	$1,995
Total revenues		$11,337
Expenses:
Salary expense	$4,566
Rent expense	$850
Advertising expense	$1,250
Telephone expense	$550
Travel expense	$70
Total expenses		$7,286
Net Income		$4,051