Question

Tom West is a land surveyor who operates a small surveying company, performing surveys for both residential and commercial clients. He has a staff of surveyors and engineers who are employed by the firm. For the year ending December 31, 2017, he reported the following income and expenses.

Service Revenue	$840,000
Surveyor Salary	125,000
Supplies and Materials	31,000
Utilities	14,000
Office Rent	25,000
Administrative Expenses	105,000

Using this information, construct an income statement to reflect his net income for 2017.

Tom West
Income Statement
For Year Ending 2017
		$
	$
		$

Answer 1

Tom West

Income Statement

For Year Ending 2017

Service Revenue		$840,000
Operating Expenses
Surveyor Salary	$125,000
Supplies and Materials	31,000
Utilities	14,000
Office Rent	25,000
Administrative Expenses	105,000	300,000
Net Income		$540,000