PE 1-4B Income statement

The revenues and expenses of Sentinel Travel Service for the year ended August 31, 2016, follow: 

Fees earned $750,000

Office expense 295,000

Miscellaneous expense 12,000

Wages expense 450,000

Prepare an income statement for the year ended August 31, 2016.

Answer:

SENTINEL TRAVEL SERVICE 

Income Statement 

For the Year Ended August 31, 2016 

Fees earned $750,000 

Expenses: 

Wages expense $450,000 

Office expense 295,000 

Miscellaneous expense 12,000 

Total expenses 757,000 

Net loss $   (7,000)