Question

A tabular analysis of the transactions made during August 2017 by Sheridan Company during its first month of operations is shown below. Each increase and decrease in stockholders' equity is explained. Assets Liabilities Stockholders' Equity Cash+ A/R Supp. + Equip. Accounts Payable + Common Stock + Retained Earnings Revenues Expenses Dividends (1) $18,400 $18,400 Com. Stock $5,060 $3,950 -780 $780 4,500 $5,400 S9,900 (4) (5) 2,500 (6)1,300 Serv. Rev. -2,500 -$1,300 Div. -790 -$790 Rent Exp 410 -410 (9) -4,000 (10) -4.000 Sal. Exp. 220 -220 Util. Exp. Prepare an income statement for August. SHERIDAN COMPANY Income Statement

Answer 1

Income Statement
For the Month Ended August 31, 2017
Revenues
Service Revenue		9900
Expenses:
Rent Expense	790
Salaries and Wages Expense	4000
Utilities Expense	220
Total expenses		5010
Net income		4890