The income statement of Benning Co.

for the month of July shows net income of $1,400

based on Service Revenue $5,500,Wages Expense $2,300, Supplies Expense $1,200, and
Utilities Expense $600. In reviewing the statement, you discover the following. 1.
Insurance expired during July of $400 was omitted. 2. Supplies expense includes $200 of
supplies that are still on hand at July 31. 3. Depreciation on equipment of $150 was
omitted. 4. Accrued but unpaid wages at July 31 of $300 were not included. 5. Services
provided but unrecorded totaled $500. Prepare a correct income statement for July 2008.

BENNING CO.
Income Statement
For the Month Ended July 31, 2010

Revenues
Service revenue ($5,500 + $500)........................................................
$6,000
Expenses
Wages expense ($2,300 + $300)......................................................... $2,600
Supplies expense ($1,200 – $200)......................................................    1,000
Utilities expense..................................................................................    600
Insurance expense..............................................................................    400
Depreciation expense......................................................................... 150
Total expenses...........................................................................
4,750
Net income .................................................................................................... $1,250