7-1 APPLICATION PROBLEM tamar AUTOMATED ACCOUNTIHG Preparing an income statement A form is given in the Working Papers. The following information is obtained from the work sheet of Len's Laundry for the month ended August 31 of the current year. INCOME STATEMENT BALANCE SHEET ACCOUNT TITLE DEBIT CREDIT DEBIT CREDIT Sales 6 23300 12 Advertising Expense 80000 20000 31500 45000 1495 00 12 Insurance Expense Miscellaneous Expense Supplies Expense Utilities Expense 4 326000 623300 1043600 746300 17 29 73008 623300 623300 1043600 1043600 19 17 Net Income 29 7300 19 20 20 21 Instructions: 1. Prepare an income statement for the month ended August 31 of the current year. 2. Calculate and record the component percentages for total expenses and net income. Round percentage calculations to the nearest 0.1%. Name Date Class 7-1 APPLICATION PROBLEM, p. 194 Preparing an income statement Chopter 7 Financial Statements for a Proprietorship 149