EX 4-6 Income statement; net loss

The following revenue and expense account balances were taken from the ledger of
Graphics Services Co. after the accounts had been adjusted on February 29, 2012, the
end of the current fiscal year:

Depreciation Expense $ 9,000        Service Revenue $250,000
Insurance Expense 4,000                Supplies Expense 3,000
Miscellaneous Expense 5,000         Utilities Expense 14,600
Rent Expense 36,000                       Wages Expense 215,000

Prepare an income statement.

Answer:

GRAPHICS SERVICES CO. 

Income Statement 

For the Year Ended February 29, 2012 

Service revenue........................................................$250,000
Expenses:
 Wages expense ........................................$215,000
 Rent expense............................................36,000
 Utilities expense........................................14,600
 Depreciation expense ............................... 9,000
 Insurance expense..................................... 4,000
 Supplies expense........................................3,000
 Miscellaneous expense ............................. 5,000
 Total expenses......................................................... 286,600
Net loss ...................................................................$ 36,600