The income statement of Marx Co. for the month of July shows net income of $1,500 based

Question:

The income statement of Marx Co. for the month of July shows net income of $1,500 based on Service Revenue $5,500; Wages Expense $2,300; Supplies Expense $900, and Utilities Expense $800. In reviewing the statement, you discover the following:
1. Insurance expired during July of $350 was omitted.
2. Supplies expense includes $200 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. Revenue earned but unrecorded totaled $700.

Instructions
Prepare a correct income statement for July 2010.

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Financial Accounting Tools for Business Decision Making

ISBN: 978-0470239803

5th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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