Problem

Income StatementAn inexperienced accountant for Prestwick Company prepared the following i...

Income Statement

An inexperienced accountant for Prestwick Company prepared the following income statement for the month of August 2015:

PRESTWICK COMPANY AUGUST 31, 2015

Revenues:

Services provided to customers

$17,000

 

Investment by stockholders

5,000

 

Loan from bank

15,000

$37,000

Expenses:

Payments to long-term creditors

$11,700

 

Expenses required to provide services to customers

7,800

 

Purchase of land

16,000

35,500

Net income

 

$ 1,500

Prepare a revised income statement in accordance with generally accepted accounting principles.

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