On September 1, 2011, Fast Track, Inc. was started with $30,000 invested by the owners as contributed capital. On September 30, 2011, the accounting records contained the following amounts:
Accounts Payable $2,200 Dividends Declared and paid $2,300
Accounts Receivable $2,200 Office Equipment $25,000
Accumulated Depreciation $500 Office Supplies Inventory $1,750
Cash $10,000 Office Supplies Expense $600
Consulting Fees Revenue $19,200 Rent Expense $2,400
Contributed Capital $30,000 Salary Expense $6,900
Depreciation Expense $500 Telephone Expense $250
Prepare an income statement, for September for the first month of Fast Track's Operation, Ignore income taxes
To prepare an income statement for the first month of Fast Track's operation in September, we need to gather the revenues and expenses incurred during this period.
First, let's list the revenues:
- Consulting Fees Revenue: $19,200
Next, we will list the expenses:
- Office Supplies Expense: $600
- Rent Expense: $2,400
- Depreciation Expense: $500
- Salary Expense: $6,900
- Telephone Expense: $250
To calculate the net income, we need to subtract the total expenses from the total revenues:
Net Income = Revenues - Expenses
Revenues: $19,200
Expenses: $600 + $2,400 + $500 + $6,900 + $250 = $10,650
Net Income = $19,200 - $10,650 = $8,550
Therefore, the income statement for the month of September, the first month of Fast Track's operation, would be as follows:
Fast Track, Inc.
Income Statement
For the Month Ended September 30, 2011
Revenues:
Consulting Fees Revenue $19,200
Expenses:
Office Supplies Expense $600
Rent Expense $2,400
Depreciation Expense $500
Salary Expense $6,900
Telephone Expense $250
Total Expenses $10,650
Net Income $8,550