Question

These financial statement items are for Tamarisk, Inc. at year-end, July 31, 2017. Salaries and wages payable $ 3,480 Salaries and wages expense 58,800 Supplies expense 17,400 Equipment 19,900 Accounts payable 4,100 Service revenue 67,400 Rent revenue 10,300 Notes payable (due in 2020) 3,600 Common stock 16,000 Cash 30,500 Accounts receivable 11,580 Accumulated depreciation—equipment 8,000 Dividends 4,000 Depreciation expense 6,000 Retained earnings (beginning of the year) 35,300 Prepare an income statement for the year. Tamarisk, Inc. did not issue any new stock during the year.

Answer 1

Answer:

Explanation:

In the income statement, the total revenues and the total expenses are recorded.  

If the total revenues are more than the total expenditure then the company earns net income

And, If the total revenues are less than the total expenditure then the company have a net loss

This net income or net loss would reflect in the statement of the retained earning account.  

The preparation of the income statement is presented in the spreadsheet. Kindly find the attachment below:

The company has a net loss of $4,500