Topic 2 / Task 2 The Income Statement:

An inexperienced accounting intern at Krger Company prepared the following income statement for the month of July 2018:

Krger Company

Month of November 2020

Revenues:

Services provided to customers $25,000

Capital stock 12,500

Loan from bank 37,500 $75,000

Expenses:

Payments to long-term creditors $20,000

Expenses required to provide services to

customers 18,750

Purchase of equipment 10,000 48,750

Net income $ 26,250

Instructions:

Task 2.1. Prepare a revised income statement in accordance with generally accepted accounting principles and

Task 2.2. Explain the reasons why you revised the income statement, including or excluding some of the above items.

Answer:

Krger Company

Month of November 2020