Jiminez, Inc., had the following transactions during the month of March 2015. Prepare an income statement based on this information, being careful to include only those items that should appear in that financial statement. 1. Cash received from bank loans was $10,000Revenues earned and received in cash were $9,850. 3. Dividends of $4,000 were paid to stockholders. 4. Expenses incurred and paid were $5,465

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Princess

Business

14 October, 12:59

Jiminez, Inc., had the following transactions during the month of March 2015. Prepare an income statement based on this information, being careful to include only those items that should appear in that financial statement. 1. Cash received from bank loans was $10,000Revenues earned and received in cash were $9,850. 3. Dividends of $4,000 were paid to stockholders. 4. Expenses incurred and paid were $5,465

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Allan Vargas · Answer 1

net income 4,385

Explanation:

The income statment will only include revenues and expenses account.

A revenue will be the gain realized from the business main activity or secondary like interst or rental revenues.

While expenses will be the cash erogation or losses iincurred in the business activities, their financing like interest expenses and other.

revenues 9,850

expenses 5,465

net income 4,385

The loan is not an expense. It wil lbe the interest it generated but we aren't given with that information

The dividends also aren't an expense they represent the return to the investors.