Prepare an Income Statement for Pet Sitters,Inc

question 79

Essay

Prepare an income statement for Pet Sitters,Inc.,using the following data for the year ending December 31,2017.Show proper order of accounts and operating income and net income.
$\begin{array}{c}\begin{array}{|l|}\hline \text { Income Tax Expense} \\\hline \text { Wages Expense } \\\hline \text {Operating and Administrative } \\\hline \text { Expense } \\\hline\end{array}\begin{array}{r|}\hline\$637,900\\\hline5,986,000\\\hline531,800\\\hline\\\hline\end{array}\begin{array}{r|}\hline \text {Sales Revenue}\\\hline \text {Depreciation Expense}\\\hline \text {Interest Expense}\\\hline \text {}\\\hline\end{array}\begin{array}{r|}\hline\$8,964,500\\\hline375,400\\\hline268,400\\\hline\\\hline\end{array}\end{array}$

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Definitions:

Cost Method

An accounting method used to value an investment, based on the cost to acquire it, without considering its fair market value changes.

Voting Shares

Shares that grant the holder the right to vote on corporate matters, typically related to company governance.

Bonds Payable

Long-term liabilities on a company's balance sheet, representing the amount owed to bondholders by the issuer.

Straight Line Amortization

A method of allocating an asset's cost evenly over its useful life.