Step 1: Calculate Total Revenues and Total Expenses Total Revenues: January 13: Service Revenue = $26,600 January 17: Unearned Revenue = $4,800 Total Revenues = $ 26 , 600 + $ 4 , 800 = $ 31 , 400 \text{Total Revenues} = \$26,600 + \$4,800 = \$31,400 Total Expenses: Rent Expense: $775 (for January, calculated as $9,300 / 12) January 9: Supplies Expense = $4,600 January 20: Salaries Expense = $12,600 Total Expenses = $ 775 + $ 4 , 600 + $ 12 , 600 = $ 17 , 975 \text{Total Expenses} = \$775 + \$4,600 + \$12,600 = \$17,975 Explanation: Calculate Total Revenues Sum the service revenue and unearned revenue for January to get the total revenues of $31,400. Add the rent expense, supplies expense, and salaries expense for January to get the total expenses of $17,975. Step 2: Calculate Net Income Net Income = Total Revenues − Total Expenses \text{Net Income} = \text{Total Revenues} - \text{Total Expenses} Net Income = $ 31 , 400 − $ 17 , 975 = $ 13 , 425 Explanation: Subtract the total expenses from the total revenues to determine the net income of $13,425 for January. Final: Income Statement: DYNAMITE FIREWORKS Income Statement For the period ended January 31, 2021 Revenues: Service Revenue $26,600 Unearned Revenue $4,800 Total Revenues: $31,400 Expenses: Rent Expense $775 Salaries Expense $12,600 Supplies Expense $4,600 Total Expenses: $17,975 Net Income: $13,425

Income statement | Accounting Answer

Accounting

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