The revenues and expenses of Sunset Travel Service for the year ended April 30, 2014,

are listed below.

Fees earned $1,673,000

Office expense 488,000

Miscellaneous expense 34,000

Wages expense 660,000

Prepare an income statement for the current year ended April 30, 2014.

Net profit = $491,000

Explanation:

An income statement is one of the three important financial statements used for reporting a company's financial performance over a specific accounting period. The income statement focuses on the four key items - revenue, expenses, gains, and losses. It does not cover receipts (money received by the business) or the cash payments/disbursements (money paid by the business).

It follows the general structures:

Revenues (+)

Operating Revenue

Non-Operating Revenue

Total

Expenses (-)

Primary Activity Expenses

Secondary Activity Expenses

Total

Gains (+)

Losses (-)

Net income/loss

In this exercise:

Total revenues=$1,673,000

Expenses:

Office expense 488,000

Miscellaneous expense 34,000

IWages expense 660,000

Total Expenses=$1,182,000

Net profit = $491,000