Business Insurance Agency prepares monthly financial statements. Presented below is an income statement for the month of June that is correct based on the information considered. Additional Data: When the income statement was prepared, the company accountant neglected to take into consideration the following information:
1. Supplies on hand at the beginning of the month were $3,000. The agency purchased additional supplies during the month for $4,000 in cash and $2,600 of supplies were on hand at June 30.
2. The agency purchased a new car at the beginning of the month for $31,000 cash. The car will depreciate $9,000 per year.
3. Salaries owed to employees at the end of the month total $6,100. The salaries will Instructions
Prepare a correct income statement.

Question

Business Insurance Agency prepares monthly financial statements. Presented below is an income statement for the month of June that is correct based on the information considered.  Additional Data: When the income statement was prepared, the company accountant neglected to take into consideration the following information:
1. Supplies on hand at the beginning of the month were $3,000. The agency purchased additional supplies during the month for $4,000 in cash and $2,600 of supplies were on hand at June 30.
2. The agency purchased a new car at the beginning of the month for $31,000 cash. The car will depreciate $9,000 per year.
3. Salaries owed to employees at the end of the month total $6,100. The salaries will Instructions
Prepare a correct income statement.

Quizplus · Accepted Answer

The Answer of Business Insurance Agency prepares monthly financial statements. Presented below is an income statement for the month of June that is correct based on the information considered.  Additional Data: When the income statement was prepared, the company accountant neglected to take into consideration the following information:
1. Supplies on hand at the beginning of the month were $3,000. The agency purchased additional supplies during the month for $4,000 in cash and $2,600 of supplies were on hand at June 30.
2. The agency purchased a new car at the beginning of the month for $31,000 cash. The car will depreciate $9,000 per year.
3. Salaries owed to employees at the end of the month total $6,100. The salaries will Instructions
Prepare a correct income statement.

Business Insurance Agency Prepares Monthly Financial Statements