Chapter 1, Problem 15QS

To determine

Statement of Income:

A statement of income or income statement is one of the most important primary financial statements. This statement is prepared in order to determine the net results of a company. If the result is positive, it is represented as net profit and if the result is negative, then it is termed as a net loss. All types of expenses (operating and non-operating) are segregated based on their nature and presented accordingly. Similarly, mainstream revenues and other revenues are shown separately. Finally, the total expenses are subtracted from the total revenues to determine the net profit or loss at the end of the period.

To Prepare:

Statement of income for the month ended December 31^st.