Question

The following account balances were taken from the 2018 adjusted trial balance of the Bowler Corporation:

sales revenue, $325,000

cost of goods sold, $168,000

salaries expense, $45,000

 rent expense, $20,000

depreciation expense, $30,000

and miscellaneous expense, $12,000

Prepare an income statement for 2018.

Answer 1

Income statement : This is a company's financial statement that shows all of the company's revenues and expenses over time. It is ready to determine an organization's net income.

Bowler Corporation

Income Statement

For the Year Ended December 31,2018

Particulars	Amount$	Amount$
Service Revenue		325,000
Less : Cost of goods sold		168,000
Gross profit		157,000
Expenses:
Rent expense	20,000
Salaries expense	45,000
Depreciation expense	30,000
Miscellaneous expense	12,000
Total expenses		107,000
Net income		50,000

Therefore, the net income of Bowler Corporation for the year 2018 is $50,000