I have to prepare a income statement with the following info. I don't understand it.
cash 11,360
Accounts Receivable 14,000
office supplies 3,250
land 46,000
office equipment 18,000
accounts payable 8,500
owner investments 84,000
cash withdrawals by owner 2,000
consulting fees earned 14,000
rent expense 3,550
salaries expenses 7,000
telephone expense 760
misc. expenses 580
Any help would be appreciated. I just need to see it done one time so I can catch on.

Dan, I think for this question you only need to use the fees earned and the expenses to determine net income.
As I recall the formula is
Revenues - Expenses = Net Income
The only revenue entry I see is the fees earned. You need to add up the expenses and subtract them from the fees. T think the form looks something like this:
Fees earned xxxx
list each expense
Exp xxxx
Exp xxxx
Exp xxxx
Subtotal each section and subtract expenses from revunues
Net Income = difference of the two subtotals

All of the other entries look like balance sheet accounts to me.
The withdrawals by owner would appear on a statement called change in owner's equity.
Your book should have examples of each of these statements and how to prepare them.

I was getting mixed up on what revenues were. I had it all mixed up. I was thinking that cash was a revenue.

I should also mention to be sure and have a title on the document that states clearly what it is and a date to tell what time period the statement is for, quartely or annual.
Cash is a permanent account on the balance sheet. For the income statement we're only interested in the temporary accounts.

Would cash be considered owners equity or would just owners investments be considered equity?

Cash is not owner's equity. It's a permanent asset account. The owner's equity or capital account, or in this case I think owner investments, is the owner's equity.

  1. 👍
  2. 👎
  3. 👁

Respond to this Question

First Name

Your Response

Similar Questions

  1. Accounting

    Identify whether each of the following items would appear on the income statement (IS), statement of changes in stockholders’ equity (SE), balance sheet (BS), or statement of cash flows (CF). Some items may appear on more than

  2. accounting

    indicate in the table below the financial statement on which each of the following accounts appear. (FINANCIAL STATEMENTS) ACCOUNTS: CASH IN THE BANK DOES IT BELONG ON INCOME STATEMENT OR STATEMENT OF CHANGES IN OWNERS EQUITY OR

  3. accounting

    On May 31, 2011, James Logan Company had a cash balance per books of $6,781.50. The bank statement from Farmers State Bank on that date showed a balance of $6,404.60. A comparison of the statement with the cash account revealed

  4. Accounting

    Show the effect of each transaction on the individual accounts of the expanded accounting equation: Assets=Liabilities +Owner's Equity (Capital-Drawing+Revenues-Expenses). After each transaction, show the new account total.

  1. accounting

    P4-2A The adjusted trial balance columns of the worksheet for Porter Company are as follows. PORTER COMPANY Worksheet For the Year Ended December 31, 2008 Adjusted Account Trial Balance No. Account Titles Dr. Cr. 101 Cash 18,800

  2. Accounts

    The financial statement that shows business results in terms of revenue and expenses is __________. an income statement a balance sheet a statement of owner's equity the statement of cash flows Answer A

  3. Accounts

    On a worksheet, the adjusted balance of the Depreciation Expense account is extended to the __________ column. (Points: 5) Income Statement Debit Income Statement Credit Balance Sheet Debit Balance Sheet Credit I dnt understand

  4. Financial Accounting

    Calculate accounts receivable turnover ratio. Calculate accounts receivable turnover ratio. Selected information from Mystic Corporation’s balance sheet at December 31, 2010 and income statement for the year ended December 31,

  1. accounting 2 urgent please help

    part 2 thank you Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities a.Equipment and land were acquired for cash b.There were no disposal of equipment during the year

  2. accounting 2

    a.Equipment and land were acquired for cash b.There were no disposal of equipment during the year c.The investments were sold for 45,000 cash d.The common stock was issued for cash e.There was a 65,900 credit to retained earning

  3. financial accounting

    Zumbrunn Company’s income statement contained the condensed information below. ZUMBRUNN COMPANY Income Statement For the Year Ended December 31, 2015 Service revenue $969,400 Operating expenses, excluding depreciation $624,480

  4. accounting

    describe a balance sheet, income statement, retained earnings statement, and statement of cash flows? How does a company use these financial statements to make future business decisions?

You can view more similar questions or ask a new question.