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Prepare a correct income statement for July 2006

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E3-6 The income statement of Olympic Corp. for the month of July shows net income of
$1,400 based on Service Revenue $5,500,Wages Expense $2,300, Supplies Expense $1,200, and
Utilities Expense $600.

In reviewing the statement, you discover the following.
1. Insurance expired during July of $400 was omitted.
2. Supplies expense includes $300 of supplies that are still on hand at July 31.
3. Depreciation on equipment of $150 was omitted.
4. Accrued but unpaid wages at July 31 of $300 were not included.
5. Services provided but unrecorded totaled $1,000.

Instructions

Prepare a correct income statement for July 2006.

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Solution Summary

The expert prepares a correct income statement for July 2006.

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