An Inexperienced Accounting Intern at Tasso Company Prepared the Following

An inexperienced accounting intern at Tasso Company prepared the following income statement for the month of July 2009:
Instructions: Prepare a revised income statement in accordance with generally accepted accounting principles.
$\begin{array}{c} \text { Tasso Company }\\ \text { Month of July 2009}\\\begin{array}{|l|r|l|}\hline \text { Revenues: } & & \\\hline \text { Services provided to customers } & \$ 25,000 & \\\hline \text { Capital stock } & 12,500 & \\\hline \text { Loan from bank } & \underline{37,500} & \$ 75,000 \\\hline & & \\\hline \text { Expenses: } & & \\\hline \text { Payments to long-term creditors } & \$ 20,000 & \\\hline \text { Expenses required to provide services to } & & \\\hline \quad \text { Customers } & 18,750 & \\\hline \text { Purchase of equipment } & \underline{10,000} & \underline{48,750} \\\hline \text { Net income } & & \$ 26,250\\\hline \end{array}\end{array}$