Question

These financial statement items are for Riverbed Company at year-end, July 31, 2022.

Salaries and wages payable $1,800 Notes payable (long-term) $1,700
Salaries and wages expense 52,000 Cash 14,800
Utilities expense 22,600 Accounts receivable 10,700
Equipment 31,500 Accumulated depreciation-equipment 6,500
Accounts payable 4,600 Dividends 4,300
Service revenue 61,900 Depreciation expense 3,500
Rent revenue 8,500 Retained earnings (beginning of the year) 22,000
Common stock 32,400

Required:
Prepare an income statement for the year.

Answer 1

Riverbed Company

Income statement for the year July 31, 2022

Service revenue 61,900

Add Other Incomes

Rent revenue 8,500

70,400

Less Expenses

Salaries and wages expense 52,000

Utilities expense 22,600

Depreciation expense 3,500 (78,100)

Net Income / Loss (7,700)

Step-by-step explanation:

In the Income Statement, we record Revenues and Incomes only. This Statement is used to calculate the Profit earned during the Reporting Period.