I'm confused is the teacher try to trick me?

Question

The adjusted trial balance of Ninety-Six Inc. on December 31, 2008 includes the following accounts: Accumulated Depreciation, $6,000; Depreciation Expense, $2,000; Note Payable $7,500; Interest Expense $150; Utilities Expense, $300; Rent Expense, $500; Service Revenue, $19,600; Salaries Expense, $4,000; Supplies, $200; Supplies Expense, $1,200; Wages Payable, $600. Prepare an income statement for the month of December.

Answer 1

The income statement will not include the items from the Asset, Liability, and Equity sections.  I don't know if this is a complete list that you gave us, but if it isn't--you can make the adjustments based on the following:

List the revenue items and total

List the Expenses and total

Deduct the expense from the revenue for the net income/loss

In the list you gave us, you would leave out the accumulated depreciation, the note payable, and the wages payable because they would not be revenue or expense items.  Good luck!

Answer 2

What!

Answer 3

You're showing us a problem completely out of context. I don't know your teacher, and I don't know what he/she expects from you.  This should have all been explained to you in class.  If you're still confused, ask the teacher :-)  Good luck.

Generally speaking, I can tell you that he/she probably wants you to create a table with rows and columns, and fill it in with the given information.

Answer 4

Income Statement

December 2008

Sales Revenue $19,600

Depreciation $2,000

Interest $150

Utilities $300

Rent $300

Salary $4,000

Supplies $1,200

Gross Income $11,950

--------------------------------------...

The other items listed are shown on the balance sheet, not on the income statement. If you are in an accounting class and do not understand these statements, you need to talk to your teacher.  He is not trying to trick you. This is basic accounting, the first thing you learn.

Good luck! And do your homework! ;)

Answer 5

I'm no bookkeeper, or mathematician for that matter. But wouldn't you start with the gross income (which I think is the Service Revenue) and subtract the expenses (everything else except the accumulated depreciation, I think.)