Abel Electric Repair Income Statement, CH1, AP2 Jeff Tsui Wilson Chien Annie Huang Sun Yangiu

Income Statement

Formulas Used Sum of Payroll taxes, Supplies, Maintenance, Insurance, Rent, Utilities, Miscellaneous (including advertising), and Van Expenses = Total Expenses. Pretax Income = Revenues from services - Total Expenses. Net Income = Pretax Income – (Uncollected Bills + Unpaid rent + Income taxes Expenses)

Definitions Expenses- Represent the dollar amount of resources the entity used to earn revenues during the period. – Decrease in assets or increases in liabilities from ongoing operations incurred to generate revenues during the period. Net Income- Also can mean Net Earnings is the excess of total revenues over total expenses. – The current year’s net income reported on the income statement Revenues- Profit that generate from sale of goods or services to customers. Pretax Income- The income calculated after expenses are subtracted from revenues and before tax is collected.