The income statement of Garska Co. for the month of July shows net income of $2,720 based on Service Revenue $7,350; Salaries and Wages Expense $2,910; Supplies Expense $950; and Utilities Expense $770. In reviewing the statement, you discover the following:
1. Insurance expired during July of $560 was omitted.
2. Supplies expense includes $240 of supplies that are still on hand at July 31.
3. Depreciation on equipment of $180 was omitted.
4. Accrued but unpaid wages at July 31 of $360 were not included.
5. Service performed but unrecorded totaled $790.
Prepare a correct income statement for July 2014.
Revenues
Service Revenue =
Expenses
Salaries and Wages Expense =
Supplies Expense =
Utilities Expense =
_____________ =
_____________ =
Total Expenses =
Net Income/(Loss) =
Side Note: I am assuming the two blanks under expenses would be insurance expense and depreciation expense. Also, does the net income stated above ($2,720) have to equal the corrected net income?