The revenues and expenses of Sentinel Travel Service for the year ended August 31,

The revenues and expenses of Sentinel Travel Service for the year ended August 31,
2014, are listed below.

Fees earned $750,000
Office expense 295,000
Miscellaneous expense 12,000
Wages expense 450,000


Prepare an income statement for the current year ended August 31, 2014.


Answer:

SENTINEL TRAVEL SERVICE
Income Statement
For the Year Ended August 31, 2014
Fees earned $750,000
Expenses:
Wages expense $450,000
Office expense 295,000
Miscellaneous expense 12,000
Total expenses 757,000
Net loss $ (7,000)