Exploration Services was organized on March 1, 2014. A summary of the revenue and expense transactions for March follows:

Exploration Services was organized on March 1, 2014. A summary of the revenue and expense transactions for March follows:

Fees earned                      $1,100,000
Wages expense                     715,000
Rent expense                          80,000
Supplies expense                     9,000
Miscellaneous expense          12,000


Prepare an income statement for the month ended March 31.

Answer:

EXPLORATION SERVICES Income Statement For the Month Ended March 31, 2014 Fees earned  $1,100,000 Expenses:   Wages expense $715,000  Rent expense 80,000  Supplies expense 9,000  Miscellaneous expense 12,000  Total expenses  816,000 Net income  $  284,000