Question

The following relates to Kim’s Karate Pty Ltd for the year ending 31 March 2020: Required: Prepare an Income Statement. Marks will be deducted for including items that do not belong. Rent Expense 36,000 Equipment 72,000 Prepaid Insurance 14,000 Salaries Expense 113,500 Cash at Bank 23,000 Telephone Expense 4,500 Service Revenue 269,500 Advertising Expense 12,000 Wages Payable 11,500 Depreciation- Equipment 23,000 Supplies Expense 54,000 Electricity Expense 15,000 Accumulated Depreciation- Equipment 76,000

Answer 1

Solution:
	Kim’s Karate Pty Ltd
	Income Statement
	For the year Ended March 31, 2020
	Revenues:	Amount	Amount
	Service Revenue		$        2,69,500
	Less: Expenses
	Rent Expenses	$               36,000
	Salaries Expenses	$            1,13,500
	Telephone Expenses	$                  4,500
	Advertising Expenses	$               12,000
	Depreciation - Equipment	$               23,000
	Supplies Expenses	$               54,000
	Electricity Expenses	$               15,000
	Total Expenses		$        2,58,000
	Net Income		$            11,500