The following revenue and expense account balances were taken from the ledger of Wholistic Health Services Co. after the accounts had been adjusted on February 28, 2019, the end of the fiscal year: Depreciation Expense $9,000 Service Revenue $270,900
Insurance Expense 4,000 Supplies Expense 3,000
Miscellaneous Expense 6,000 Utilities Expense 1,760
Rent Expense 4,200 Wages Expense 213,000
Prepare an income statement.

Wholistic Health Services Co.

Income Statement for the year end February 28, 2019

Service Revenue                           $270,900

Less: Supplies Expense                $3,000    

Gross Income                                  $267,900

Less operating Expenses:

Insurance Expense         $4,000

Depreciation Expense    $9,000

Miscellaneous Expense $6,000

Utilities Expense             $1,760

Rent Expense                  $4,200

Wages Expense              $213,000

                                                       $237,960

Net Income                                    $29,940      

Explanation:

Income statement shows the performance of the company in a year. It provides the details of revenue, expenses and profits for the year. All the expenses are deducted from the revenue to determine the net earning of the business.

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