Question

Need help net income should equal $53,750 and total Assets should equal 907600 but I keep getting something different.

Answer 1

	Income Statement
	Service Revenue			$ 1,93,250.00
Less:	Expenses:
	Rent Expense		$      2,250.00
	Utilities Expense		$      8,200.00
	Salaries Expense		$ 1,15,000.00
	Insurance Expense		$      2,600.00
	Supplies Expense		$      7,000.00
	Depreciation Expense		$      3,800.00
	Interest Expense		$         650.00
	Total Expenses			$ 1,39,500.00
	Net Income			$    53,750.00

Service Revenue
		$    76,000.00
		$ 1,05,250.00
		$    12,000.00
		$ 1,93,250.00

Note: I've no idea from where did you get that $ 60000 in service revenue account

Computation of Total Assets
Cash			$   3,63,550.00
Accounts Receivable			$   2,01,250.00
Supplies			$      63,000.00
Prepaid Insurance			$      28,600.00
Equipment			$   2,51,200.00
Total Assets			$   9,07,600.00

Note: Balance of the assets are taken from the T-Accounts you provided only.